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Best Alternative To Funding Circle
The fact of the matter is that Funding Circle is absolutely the stand-out leader in unsecured business lending:
- It has a very long and large history to assess its record: £2 billion in loans since 2010. No-one else comes close.
- Its performance has been highly admirable and our severe stress tests
- Its interest rates are fair to great for the risks involved.
- 4thWay's review of its key people and processes also shows it is a top-notch lending operation.
It is because of the top three points in that list that Funding Circle is the only unsecured business loans P2P lending site that has earned 4thWay PLUS Ratings (see info box, right), which it has done on all of its products (A+ loans right down to E-grade loans.)
To cap it off, it could be profitable if it chose to stop expanding. Most P2P lending sites are still loss-making.
Which P2P lending sites can compete with the big “FC”?
We don't think any unsecured business P2P lenders are in the same league, but I think the closest competition, if you're looking for more variety in your unsecured business lending, is LendingCrowd*.
LendingCrowd has a great record from its 150 or so loans and we really like what we see, but it is just so much smaller and newer than Funding Circle. It does offer an IFISA though, while Funding Circle still doesn't.
I think that all other P2P lending sites doing unsecured business lending that provide any kind of information about how they work, such as Rebuildingsociety* and FundingKnight, simply aren't of the same standard, or they work very differently, such as Crowd2Fund* or Money&Co.
Independent opinion: 4thWay will help you to identify your options and narrow down your choices. We suggest what you could do, but we won't tell you what to do or where to lend; the decision is yours. We are responsible for the accuracy and quality of the information we provide, but not for any decision you make based on it. The material is for general information and education purposes only.
We are not financial, legal or tax advisors, which means that we don't offer advice or recommendations based on your circumstances and goals.
The opinions expressed are those of the author(s) and not held by 4thWay. 4thWay is not regulated by ESMA or the FCA. All the specialists and researchers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.
*Commission, fees and impartial research: our service is free to you. 4thWay shows dozens of P2P lending accounts in our accurate comparison tables and we add new ones as they make it through our listing process. We receive compensation from Crowd2Fund, LendingCrowd and Rebuildingsociety and other P2P lending companies not mentioned above either when you click through from our website and open accounts with them, or to cover the costs of conducting our calculated stress tests and ratings assessments. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.