365 Business Finance vs Funding Circle: Which UK Business Finance Provider in 2026?
Funding Circle edges this matchup in our 2026 UK panel review, scoring 4.3 of 5 against 365 Business Finance on 4.1. Funding Circle runs term loan at £10k to £500k on 6.9% to 26.9% apr; 365 Business Finance runs merchant cash advance at £10k to £500k on factor rate 1.10 to 1.40. That said, the right answer depends on ticket size, trading history and sector. 365 Business Finance beats Funding Circle for hospitality, retail and ecommerce ltds with £20k+ monthly card flow. Read the side-by-side, then jump to the "when X wins" sections for the buyer-fit logic.
Side-by-side
| 365 Business Finance | Funding Circle | |
|---|---|---|
| Product type | Merchant cash advance | Term loan |
| Ticket range | £10k to £500k | £10k to £500k |
| Typical rate | Factor rate 1.10 to 1.40 | 6.9% to 26.9% APR |
| Decision time | 24 to 48 hours | 1 to 3 business days |
| Soft search at quote | Yes | Yes |
| Ltd-only? | No | No |
| FCA regulated | Yes | Yes |
| Best for | Hospitality, retail and ecommerce Ltds with £20k+ monthly card flow; £25k+ MCA tickets where the applicant wants a direct lender; Ltd directors who refuse personal guarantees | Established Ltds with 2+ years trading and clean credit; Working-capital term loans between £25k and £250k; Applicants who want a recognised brand and a fast soft-search quote |
| Overall rating | 4.1 / 5 | 4.3 / 5 |
| Last reviewed | 2026-05-10 | 2026-05-10 |
When 365 Business Finance wins
- Direct lender, so the rate the applicant sees is the rate they get with no broker mark-up layered on top.
- PG-free options on some cases, which we use to unblock Ltd directors who refuse personal guarantees.
- Daily or weekly repayment cadence we can match to the applicant cash-flow profile.
- Case-by-case acceptance on missed payments and small CCJs where mainstream term lenders auto-decline.
Best for
Hospitality, retail and ecommerce Ltds with £20k+ monthly card flow, £25k+ MCA tickets where the applicant wants a direct lender, Ltd directors who refuse personal guarantees.
Watch outs
- Sub-£10k tickets are not entertained, so we route smaller asks to iwoca or Capify instead.
- MCA only with no term-loan alternative, so applicants who want fixed monthly payments go to Funding Circle, Allica or Aldermore.
- Factor-rate model means we have to translate to APR for the applicant in the matcher result.
When Funding Circle wins
- Soft search at quote, so the matcher can run a Funding Circle indicative offer without a credit-file footprint.
- Eligibility criteria are published, which lets us pre-screen turnover, trading time and sector before we send the file.
- Decision in 1 to 3 business days, fast enough that we rarely need to route to a slower bank for a clean case.
- Established brand and FCA-regulated, useful when applicants want a name they recognise.
Best for
Established Ltds with 2+ years trading and clean credit, Working-capital term loans between £25k and £250k, Applicants who want a recognised brand and a fast soft-search quote.
Watch outs
- Headline 6.9% rate is for top-tier files only, so we set applicant expectation higher in the matcher result.
- Personal guarantee is almost always required, which we flag at matcher stage to head off late drop-off.
- Less competitive on £100k+ tickets than Allica or OakNorth, so we route bigger asks accordingly.
FAQ
365 Business Finance or Funding Circle: which is the better UK business finance provider in 2026?
Funding Circle scores higher overall in our 2026 UK panel review at 4.3 of 5 versus 4.1 for 365 Business Finance. That said, the right answer depends on what your file looks like. 365 Business Finance is the stronger pick for hospitality, retail and ecommerce ltds with £20k+ monthly card flow, while Funding Circle is the stronger pick for established ltds with 2+ years trading and clean credit. If your file sits in one of those buckets, ignore the headline rating and pick the right fit.
What does each product look like, 365 Business Finance vs Funding Circle?
365 Business Finance offers merchant cash advance between £10k to £500k at factor rate 1.10 to 1.40, with a 24 to 48 hours decision window. Funding Circle offers term loan between £10k to £500k at 6.9% to 26.9% apr, with a 1 to 3 business days decision window. 365 Business Finance uses a soft search at quote. Funding Circle uses a soft search at quote. Verify live commercials before signing because lender pricing moves and bespoke rates are common above £100k tickets.
Which is weakest for what?
365 Business Finance is the wrong answer for sub-£10k tickets, route to iwoca or capify. Funding Circle is the wrong answer for sub-12-month trading, route to iwoca or start up loans company. If either of those describes your file, look at the side-by-side table for the alternative route, or run the eligibility checker and the matcher will surface the right shortlist from the FundBiz specialty panel.
Can FundBiz help me choose between 365 Business Finance and Funding Circle?
Yes. We are independent of either lender. The FundBiz specialty panel covers MCA, asset finance, commercial mortgage, bridging, VAT loan, R&D advance and post-decline routes. Tell us ticket size, trading history, sector and any prior declines. We match you against the panel lenders most likely to approve, and if your file needs a post-decline route we surface that explicitly rather than burning credit-file footprint with repeated mainstream applications.
Am I eligible to apply via FundBiz?
FundBiz works with limited companies, LLPs and partnerships of 4 or more partners. Sole traders and partnerships under 4 partners are out of scope and routed elsewhere. Both 365 Business Finance and Funding Circle sit on our panel for the entity types we serve. Trading history requirements vary by lender, so the matcher pre-screens before sending the file across.
Related comparisons
Other UK specialty finance head-to-heads involving 365 Business Finance or Funding Circle:
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel: MCA, asset finance, commercial mortgage, bridging, VAT loan, R&D advance and post-decline routes. Limited companies, LLPs and partnerships of 4+.
Check eligibility →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-10. Editorial by Best Business Loans Ltd (16833937).