Funding Circle secures £320m facility to drive FlexiPay expansion

Funding Circle has renewed and expanded its funding facility to accelerate the growth of its FlexiPay business. The new agreement increases the facility to £320 million, up from £240 million, and extends its term to two years, providing longer-term capital to support the company’s expanding suite of financial products.

The renewed backing from institutional investors highlights confidence in Funding Circle’s proprietary technology and credit assessment capabilities. The company’s AI-powered credit models are delivering a significant edge, reportedly identifying risk three times more effectively than traditional bureau-based scoring systems. This allows Funding Circle to offer near-instant lending decisions and a streamlined experience for small business customers.

The facility will be deployed as part of Funding Circle’s capital-light funding model, combining external funding with its own equity to scale its FlexiPay division. The FlexiPay unit, which includes a flexible payments product and a cashback credit card, enables businesses to manage cash flow by spreading payments or earning rewards on spending. As of 31 December 2025, the division accounted for £206 million in assets under management, representing 7% of the company’s total portfolio.

The announcement follows strong full-year results for 2025, during which FlexiPay transactions surged by 66% to £815 million, reflecting growing demand among SMEs for flexible financing options.

Since the beta launch of its credit card in September 2024, Funding Circle has continued to expand its offering, introducing new features such as accounting software integrations, multiple company cards, and mobile wallet compatibility through Apple Pay and Google Pay earlier this year.

Dipesh Mehta, Chief Capital Officer at Funding Circle, said the renewed agreement reflects the platform’s strong track record and ongoing commitment to innovation.

“We are delighted to renew our funding agreement to support continued FlexiPay growth. We are seeing the benefits of Funding Circle’s track record with this renewed two-year commitment. This is a testament to the quality of our platform and commitment to providing accessible and innovative financial products to the UK’s small businesses.”