Funding Circle opens ISA to new investors

18 April 2018

Funding Circle, the world’s leading small business lending platform, has today opened its Innovative Finance ISA to new investors. The Funding Circle ISA offers a tax-free market-leading(1) projected return of 7.2% per year.(2)

  • Simple to use investment experience offers projected annual returns of 7.2% tax-free
  • £80 million has already been lent through an ISA by existing investors
  • Funding Circle has a proven 8-year track record of delivering attractive, stable returns

Launched in 2010, Funding Circle allows people to lend directly to small businesses, earning attractive stable returns whilst creating jobs and driving the economy forward. Investors will be able to choose one of two lending options, offering projected annual returns of either 7.2% or 4.8%, to quickly build a unique and diversified portfolio. Approximately £80 million has already been lent to thousands of businesses through a Funding Circle ISA since opening to existing investors last December.

There is the option to access funds early by selling loans to other investors at no extra cost. Currently, 98% of loans put up for sale are sold to another investor within 24 hours. To date more than £197 million in interest, after fees and bad debt, has been earned by investors.

James Meekings, UK Managing Director and co-founder, commented “We’re proud of what more than 79,000 investors have achieved over the last eight years by lending through Funding Circle. On average investors have earned 6.4% per year after fees and bad debt, creating tens of thousands of jobs by supporting businesses all over the UK. We’re excited to now offer tax-free access to this stable and attractive investment option.”

Long-term growth
If an investor uses their full ISA allowance of £20,000 to lend to businesses for five years at the current projected return of 7.2%, they could earn an estimated £8,635.77 in interest, resulting in a total portfolio of £28,635.77. By setting up a standing order for £150 a month, after 15 years this portfolio could have grown to over £100,000.(3)

The Funding Circle ISA is an Innovative Finance ISA, a new type of ISA separate to Cash and Stocks & Shares ISAs. It is also a flexi ISA, allowing investors to take their money out of their account and put it back later in the tax year without losing their tax-free entitlement. To help investors diversify and spread their risk, there is an initial minimum investment of £1,000. Investors will be able to transfer existing ISAs into a Funding Circle ISA later this year.

By bringing together industry-leading risk management policies and cutting-edge technology, more than £3.4 billion has been lent to 35,000 UK businesses. This has provided access to finance for the businesses responsible for 60% of UK GDP and 50% of UK private sector employment.


For more information, please contact:; +44(0)203 667 2245

Notes to editor

Funding Circle ( is the world’s leading lending platform for small businesses, matching investors to businesses who want to grow in the UK, U.S. and Europe. Since launching in 2010, investors at Funding Circle – including 79,000 individuals, local and national government and financial institutions – have lent £5 billion to more than 45,000 businesses globally.


(1) Based on advertised returns by UK Innovative Finance ISA providers that have originated at least £1 billion in loans. Correct as of 31st March 2018

(2) The projected return is an estimate of the annual return, after fees and bad debts, that a diversified investor could earn by lending through the Balanced lending option as of 17th April, 2018. You can see how the return is calculated here. Actual returns may be higher or lower and by lending to businesses capital is at risk.

(3) Returns are based on the annual projected return of 7.2% for investors lending through the Balanced lending option. Returns are compounded monthly and are after fees and bad debt. Based on this, an account worth £20,000 with a standing order of £150 a month would be worth £107,373.92 after 15 years. Returns are calculated using a compound interest calculator.

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