Close Brothers vs Funding Circle: Which UK Business Finance Provider in 2026?
Funding Circle is the stronger all-round pick on the FundBiz specialty panel, but Close Brothers wins on specific files. Funding Circle runs term loan at £10k to £500k on 6.9% to 26.9% apr; Close Brothers runs asset finance, invoice finance, commercial loans at £25k to £25m+ on bespoke, quoted at offer. The right answer depends on ticket size, trading history and sector. Close Brothers beats Funding Circle for established smes needing asset or invoice finance. Read the side-by-side, then jump to the "when X wins" sections for the buyer-fit logic.
Side-by-side
Full profiles: Close Brothers · Funding Circle
| Close Brothers | Funding Circle | |
|---|---|---|
| Product type | Asset finance, invoice finance, commercial loans | Term loan |
| Ticket range | £25k to £25m+ | £10k to £500k |
| Typical rate | Bespoke, quoted at offer | 6.9% to 26.9% APR |
| Decision time | 5 to 14 business days | 1 to 3 business days |
| Soft search at quote | No (hard search) | Yes |
| Ltd-only? | No | No |
| FCA regulated | Yes | Yes |
| Best for | Established SMEs needing asset or invoice finance; Print, transport, manufacturing, motor trade; Broker-introduced deals | 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 |
| FundBiz panel view | Wins on specific files | Stronger all-round |
| Last reviewed | 2026-05-08 | 2026-06-12 |
When Close Brothers wins
- Genuine UK merchant bank with 145+ years of trading history.
- Multiple product lines under one underwriter (asset, invoice, commercial loans).
- Strong sector specialisms in print, transport, manufacturing and motor trade.
- PRA-regulated; FSCS deposit protection on linked savings products.
Best for
Established SMEs needing asset or invoice finance, Print, transport, manufacturing, motor trade, Broker-introduced deals.
Watch outs
- Broker-distributed, not self-serve.
- Headline rates not published; quoted at offer.
- Slower than fintech alternatives.
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
Close Brothers or Funding Circle: which is the better UK business finance provider in 2026?
Funding Circle is our stronger all-round pick on the FundBiz specialty panel, but the right answer depends on what your file looks like. Close Brothers is the stronger pick for established smes needing asset or invoice finance, 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, pick the right fit rather than the headline. See our /methodology/ for how we assess each lender.
What does each product look like, Close Brothers vs Funding Circle?
Close Brothers offers asset finance, invoice finance, commercial loans between £25k to £25m+ at bespoke, quoted at offer, with a 5 to 14 business days 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. Close Brothers runs a hard credit search at full application. 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?
Close Brothers is the wrong answer for self-serve sub-£25k. 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 Close Brothers 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 Close Brothers 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 Close Brothers 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, Best Business Loans Ltd. Last reviewed: 2026-06-12. Editorial by Best Business Loans Ltd (16833937).