Head to head
Funding Circle vs Starling Bank: Which UK Business Finance Provider in 2026?
Independent, side by side. Rate, ticket band, decision speed and eligibility compared for UK limited companies and LLPs.
Start here · What do you need?
Funding Circle and Starling Bank are closely matched in our reviews. Funding Circle offers term loan (ticket range: £10k to £750k; rate: From 6.9% per year); Starling Bank offers business banking; loans shown in the Starling app are provided by iwoca (ticket range: Set by iwoca (Starling doesn't offer its own business loans); rate: Set by iwoca). The right answer depends on ticket size, trading history, sector and whether the file is post-decline. Read the side-by-side, then jump to the "When Funding Circle wins" and "When Starling Bank wins" sections for the buyer-fit logic. If you want to talk it through, you can send an enquiry through FundBiz and a business finance broker will contact you about your options.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
Funding Circle, at a glance
- Product
- Term loan
- Ticket range
- £10k to £750k
- Typical rate
- From 6.9% per year
- Decision time
- As little as 5 minutes
- FundBiz editorial view
- Closely matched overall; best for established Ltds with a trading record and clean credit
Starling Bank, at a glance
- Product
- Business banking; loans shown in the Starling app are provided by iwoca
- Ticket range
- Set by iwoca (Starling doesn't offer its own business loans)
- Typical rate
- Set by iwoca
- Decision time
- Set by iwoca
- FundBiz editorial view
- Closely matched overall; best for existing Starling business customers who want to see an iwoca offer inside their banking app
Side-by-side
Full profiles: Funding Circle · Starling Bank
| Compared on | Funding Circle | Starling Bank |
|---|---|---|
| Product type | Term loan | Business banking; loans shown in the Starling app are provided by iwoca |
| Ticket range | £10k to £750k | Set by iwoca (Starling doesn't offer its own business loans) |
| Typical rate | From 6.9% per year | Set by iwoca |
| Decision time | As little as 5 minutes | Set by iwoca |
| Soft search at quote | Yes | Yes |
| Ltd-only? | No | Yes |
Sources: Funding Circle's own site · Starling Bank's own site. Figures change; confirm with the lender before you rely on one.
FundBiz enquiries are for limited companies, LLPs and partnerships with four or more partners. Some lenders on this page also accept other business types; we do not arrange those and do not recommend a lender on that basis.
When Funding Circle wins
- Funding Circle says limited companies and LLPs can get a decision without affecting their credit score.
- A 30-second eligibility check before applying, on Funding Circle's own site.
- Decision in as little as 5 minutes on Funding Circle's own figures, fast enough that a clean case rarely needs a slower bank.
- Established brand, useful when applicants want a name they recognise.
Best for
Established Ltds with a trading record and clean credit, Working-capital term loans between £25k and £250k, Borrowers who want a recognised brand and a fast soft-search quote from the lender.
Watch outs
- Headline 6.9% rate is for top-tier files only, so most borrowers should expect to pay more.
- Personal guarantee is almost always required.
- Less competitive on £100k+ tickets than Allica or OakNorth.
When Starling Bank wins
- Loan offers can appear inside the existing Starling business app for eligible customers.
- PRA and FCA authorised; FSCS-protected deposits.
- iwoca, the lender behind the in-app loans, says it only runs soft credit checks when you apply.
Best for
Existing Starling business customers who want to see an iwoca offer inside their banking app.
Watch outs
- Starling doesn't lend its own business loans, so there's no Starling rate or criteria to compare.
- The in-app route is for Starling business customers only; others can apply to iwoca directly.
FAQ
Funding Circle or Starling Bank: which is the better UK business finance provider in 2026?
Funding Circle and Starling Bank are closely matched in our reviews, so the right answer depends on what your file looks like. Funding Circle is the stronger pick for established Ltds with a trading record and clean credit, while Starling Bank is the stronger pick for existing Starling business customers who want to see an iwoca offer inside their banking app. Pick the right fit for your file rather than a headline winner. See our /methodology/ for how we assess each lender.
What does each product look like, Funding Circle vs Starling Bank?
Funding Circle offers term loan (ticket range: £10k to £750k; rate: From 6.9% per year; decision time: As little as 5 minutes). Starling Bank offers business banking; loans shown in the Starling app are provided by iwoca (ticket range: Set by iwoca (Starling doesn't offer its own business loans); rate: Set by iwoca; decision time: Set by iwoca).
Funding Circle uses a soft search at quote. Starling Bank 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?
Funding Circle is the wrong answer for sub-12-month trading, consider iwoca or Start Up Loans Company. Starling Bank is the wrong answer for borrowers banking elsewhere. If either of those describes your file, look at the side-by-side table for the alternative, or read our other lender reviews.
Can FundBiz help with Funding Circle or Starling Bank?
FundBiz is not a lender and is independent of both. This comparison and our lender reviews are editorial research to help you decide which to approach. FundBiz doesn't send enquiries to lenders. If you send an enquiry through FundBiz, we pass it to a business finance broker, who will contact you about your options.
Who can send an enquiry through FundBiz?
The FundBiz enquiry form is for limited companies, LLPs and partnerships with four or more partners. Eligibility for Funding Circle and Starling Bank is set by each lender, and trading history requirements vary, so check each lender's own criteria.
Related comparisons
Other UK specialty finance head-to-heads involving Funding Circle or Starling Bank:
How we ranked these lenders
Every lender is scored on the same four FundBiz criteria: pricing transparency, eligibility clarity, decision speed and treatment of declined applicants. Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product sheets, not customer reviews and not hands-on product testing. Each comparison shows the date it was last updated. Inclusion is never paid for, and FundBiz receives no commission from lenders. FundBiz is paid a fixed fee by a business finance broker for each enquiry we pass on. See our full methodology.
Send an enquiry
Tell us what you need in 2 minutes. FundBiz is not a lender and does not run a credit check. We pass your enquiry to a business finance broker, who will contact you about your options. For limited companies, LLPs and partnerships with four or more partners.
Send an enquiry →FundBiz is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Last updated: . Editorial by Best Business Loans Ltd (16833937).