Working Capital
Editorial Team
At Working Capital, we believe access to funding should be simple, transparent, and designed around your business not the other way around. We’re committed to helping entrepreneurs make smart financial decisions with tools, guidance, and lending partners they can trust.
Running a small business means making important financial decisions every day. Whether you’re covering seasonal cash flow gaps, purchasing equipment, hiring employees, or expanding to a new location, having access to the right financing can make all the difference.
Lendistry and Funding Circle are both well-known for financing small business loans. Both offer solutions designed to help companies grow. But while they offer similar products, each lender has very different qualification requirements and serves very different borrowers.
Read on for a side-by-side comparison of Lendistry and Funding Circle to see how they compare and decide which lender aligns with your business’s financing needs.
Lendistry offers online loans for small businesses. Owners generally provide business and personal tax returns, bank statements, personal financial statements, and guaranty documentation through Lendistry’s website.4 Businesses need at least two years operations history and revenue trends that improves year over year to qualify.2
Lendistry separates its term loans into categories below and above $350,000. Borrowers with at least a 620 credit score can secure between $10,000 to $350,000 in as little as three days. These amounts come with fixed interest rates starting at 11.99%.3
Businesses can secure up to $5 million in as little as five days if they have a credit score better than 640. Lendistry bases variable borrowing costs on the WSJ Prime Rate plus 2% to 6%, which generally produces low- to mid-teen APRS for most borrowers.2
Lendistry charges prepayment penalties on its term loans. Borrowers who want to pay off the balance in full during the first year would incur an additional 5% charge.2 The fee decreases by 1% each year. So a business owner who pays the amount owed in the fifth and final year of their loan would pay a 1% prepayment penalty.
While it requires more documentation and takes longer than a fintech company’s loan, Lendistry’s traditional term loan is quicker and more convenient than most banks’. It gives small businesses access to the funds and repayment schedules they need for significant investments.
Funding Circle primarily offers fast, multi-year business loans for UK-registered limited companies and LLPs. Owners can check whether they qualify in 30 seconds, fill out an online application in seven minutes, get a decision in as little as one hour, and secure funding within 48 hours of accepting an offer.8
Funding Circle finances between £10K and £750K and offers repayment terms from six months up to six years in fixed monthly installments, which are automatically withdrawn from the borrower’s account.11 Approved businesses can use these funds to invest in equipment, improve cash flow, launch a new product line, refinance existing debts, and fund marketing campaigns.9
To qualify for Funding Circle’s term loans for small businesses, applicants need at least one year of operations history, a solid credit score, and a personal guarantee from a director or shareholder.9 U.K. borrowers in any sector can apply.
Borrowing costs are low for businesses with strong financial profiles, as Funding Circle’s APRs start at around 6.9%. They also do not charge any prepayment penalties, giving borrowers the freedom to repay loans early.9
As a business line-of-credit provider, Lendistry is unusual. It offers a non-revolving line of credit (LOC), meaning repaid funds are not available for reuse. Business owners qualify for a set credit limit upon approval, from $25K to $3 million, which they can draw on for up to two years. Each withdrawal decreases the amount of funds available until the end of the draw period.2
Once the draw period ends, borrowers cannot withdraw any more funds. They enter the repayment period and begin monthly repayments for up to five years. Business owners only pay interest on the funds they use, which Lendistry bases on the WSJ Prime Rate, plus 4%–6%.
Businesses must have at least two years of operating history and a minimum credit score of 640 to qualify. Lendistry relies on its standard underwriting procedure to evaluate applications and can make funds available within two business days for approved businesses.1
Lendistry charges a prepayment penalty on the first two years of the repayment period. Borrowers who want to pay off their LOC in full incur a 3% penalty in the first year and a 2% in the second year, but none after that.2
Lendistry’s non-revolving line of credit allows businesses to access fast working capital loans during the draw period, with higher funding amounts than many other products. Borrowers benefit from long repayment terms and competitive interest rates. Businesses investing in significant projects with ongoing expenses over the next two years can fund them with an LOC from Lendistry.
Funding Circle offers a revolving business line of credit (LOC) through its FlexiPay product.9 Unlike a non-revolving LOC, businesses can draw from FlexiPay, repay the borrowed funds, and withdraw again without reapplying. Funding Circle treats each draw as a separate loan, and businesses can choose repayment terms of one, three, six, nine, or 12 months.11
Limited companies in the U.K. with at least two years of trading history can qualify for up to £250K.13 Applying for FlexiPay doesn’t require any documents, so businesses can fill out the application and hear back from Funding Circle in as little as three minutes.9 Borrowers can access funds from their LOC the same day they apply if they make the draw before 2 pm on a business day.11
Funding Circle stands out among business line-of-credit lenders for its low borrowing costs. They charge a single flat fee per withdrawal, rather than compounding interest.11 Lines do not carry annual, setup, or prepayment fees, and paying off a draw early reduces the fees you owe.
Once Funding Circle approves a business for FlexiPay, it also automatically qualifies for a business card that gives owners access to their line of credit wherever Visa cards are accepted.11 Funding Circle’s revolving LOC gives businesses the working capital they need with flexible access, predictable payments, low costs, and fast funding.
The Small Business Administration (SBA) backs loans for U.S.-based businesses with some of the highest funding amounts, longest repayment terms, and lowest interest rates on the market. Securing one of these loans can often take several rounds of documentation and several months. As an SBA Preferred Lender, Lendistry can directly approve and fund government-backed loans.3
Lendistry funds three varieties of SBA 7(a) loans. For general-purpose and real estate loans, businesses will need a credit score above 640 and at least two years in operation.2 Qualified borrowers can then secure between $150K to $5 million with interest rates as low as WSJ Prime + 2%. Lendistry sets monthly repayments for terms up to 10 years for SBA 7(a) General Purpose loans and up to 25 years for SBA 7(a) Real Estate loans.2
The third SBA 7(a) loan Lendistry provides is a working capital loan. This product offers faster funding timelines than other government-backed financing options.3 Businesses need at least two years in operation and a credit score of at least 680 to qualify for this product. Once approved, borrowers can secure between $25K and $500K with term lengths up to 10 years and variable interest rates similar to the other SBA 7(a) loans.2
Lendistry also offers long-term business loans for commercial real estate through two additional programs. Owners can secure up to $10 million, competitive rates, and monthly repayment schedules for up to 25 years with the commercial real estate loans.8 Lendistry requires more than two years in business, a minimum 640 credit score, strong revenue, and the property as collateral.2
The SBA 7(a) Working Capital and General Purpose loans are free from prepayment penalties, meaning borrowers can pay off the remaining balance without additional charges.2 Lendistry charges a percentage of the loan as early payoff fees on the commercial real estate programs. Businesses would pay an additional 5% of the remaining balance during the first year, with the fee declining by 1% each year. By year six, even commercial real estate loans no longer carry prepayment penalties.2
Even with an SBA Preferred Lender, businesses should expect significant documentation and an underwriting process of up to 90 days. But owners with strong financial profiles and clear applications could secure government-backed funds in as little as five days with Lendistry.3
Lendistry’s versatility makes it simpler for owners to access the low-cost, long-term funding they need for commercial real estate, working capital, and everything in between.
The Growth Guarantee Scheme (GGS) is a government-backed program through the British Business Bank that subsidizes invoice financing, term loans, and asset-based funding for U.K. businesses.6 Funding Circle is one of the working capital direct lenders under this program.
To qualify for GGS financing through Funding Circle, owners must run a limited company that has been trading in the U.K. for more than two years, has less than £30 million in turnover, uses the funds for working capital, and is not involved in difficulty or insolvency proceedings.6
Qualified businesses can secure between £25K and £250K with monthly payments for two to six-year terms.6 Funding Circle charges a one-off completion fee at the beginning of the loan, and an interest rate based on each business’s financial profile. Borrowers can repay the financing at any time without any early payoff fees.6
Although the criteria for a GGS term loan are slightly stricter than for Funding Circle’s product, the process is still quick.6 The online application only takes seven minutes, the underwriting team can send a no-obligation offer in as little as one hour, and Funding Circle typically transfers funds within 48 hours.8
For businesses in the U.K., Funding Circle’s role as a direct lender for the GGS allows more borrowers to access working capital when they need it.
Lendistry supports underserved business communities by partnering with other lenders to provide specialty financing, administer grants for non-profits, and provide educational materials on finance.5
Some of these partnerships feature affordable financing for small businesses in specific fields.5 The special programs change over time, but interested businesses can find more information on Lendistry’s website.
Lendistry administers grant programs with government agencies and private organizations, which do not require repayment. The non-profit partner determines the details, but many programs include access to marketing companies, necessary technology, and funds.5 Business owners can apply for these funds through Lendistry’s platform and contact a company representative for help with these programs.1
As a financial resource hub for underserved communities, Lendistry also provides financial education resources. Partnerships with nonprofits and lenders help business owners improve their business management, growth plans, credit scores, long-term financial health, and visibility.5
With specialty programs, grants, and educational partnerships, Lendistry’s community-oriented approach sets it apart from most small-business private lenders.
One of Funding Circle’s most recent offerings is the Funding Circle Cashback credit card by Visa.12 Limited companies in the U.K. with at least one year of trading history and more than £30K in annual turnover can secure a digital business credit card through Funding Circle within a few minutes, then receive the physical card in three to five business days.
Businesses can use their card anywhere Visa is accepted, and earn cashback for doing so. Funding Circle offers a 2% introductory rate for the first six months, £2K, and then 1% cashback on all subsequent purchases.12
Owners can issue an unlimited number of company cards to their employees for free, and manage their spending permissions through Funding Circle’s online dashboard.12 Additionally, Funding Circle integrates with common accounting software for easy account management.
Funding Circle does not charge any annual or foreign exchange fees on its cashback card.12 The variable interest is typically better than 34.9% APR, and only applies if the business carries a balance from month to month. Then cardholders will be required to pay at least 10% of the balance or £100, whichever is higher.12
The Funding Circle Cashback credit card stands out among business credit cards for small businesses for its transparent costs, intuitive dashboard, useful integrations, and healthy cash back rewards. Unfortunately, only new customers in the U.K. can currently qualify for this product.12
1https://lendistry.com/faqs/
2https://www.lendistrypartners.com/wp-content/uploads/Lendistry-Product-Guide.pdf?utm
3https://lendistry.com/small-business-lending/
4https://lendistry.com/resources/
5https://lendistry.com/grants-and-programs/
6https://www.fundingcircle.com/uk/small-business-loans/growth-guarantee-scheme/
7https://www.fundingcircle.com/uk/
8https://www.fundingcircle.com/uk/small-business-loans/
9https://www.fundingcircle.com/uk/businesses/business-finance/
10https://www.fundingcircle.com/uk/resources/business-finance/preparing-credit-checks/
11https://www.fundingcircle.com/uk/payments/flexipay/
12https://www.fundingcircle.com/uk/payments/cashback/
13https://www.fundingcircle.com/uk/resources/news/flexipay-new-product-for-brokers/
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