Credit expansion at Funding Circle increases by 21% to reach £1.1 billion in the first half of the year
In a series of recent developments, Funding Circle, a leading fintech company specialising in business loans, has announced its third share buyback program, worth up to £25 million, which is currently ongoing [1]. This move comes as the company anticipates surpassing £200 million in revenue and £30 million in pre-tax profit for the full year 2026 [2].
Lisa Jacobs, the chief executive of Funding Circle, expressed her confidence in the company's ability to support more small and medium-sized enterprises (SMEs) across the UK with the funding they need to succeed. She also expressed satisfaction with the momentum carried into 2025 following the strong performance in the previous year [3].
Funding Circle's growth has been driven by the success of its FlexiPay and Cashback credit card services. Since their launch, credit extended through FlexiPay has surpassed £1 billion, marking a substantial milestone for the company [4][5]. FlexiPay, a line of credit for SMEs, allows businesses to pay for items, bills, or other costs and spread the cost over a fixed period, typically between one and 12 months [6].
The company's FlexiPay service has shown robust performance, with revenue tripling and transactions doubling in the financial year 2024, contributing to the overall growth of Funding Circle's offerings [5]. To further strengthen its ability to support SMEs, Funding Circle has recently secured a £200 million forward flow agreement with Deutsche Bank [5].
Funding Circle remains committed to investing in new products and expanding its reach. This partnership, along with other strategic financing agreements like a £230 million facility from Citi, underscores the company's determination to achieve its medium-term goals [5].
The company's term loans business originations increased from £692 million to £736 million during the first half of 2025, while credit extended during the same period totalled £1.1 billion, a 21% year-on-year increase [7]. Balances under management at Funding Circle stood at £2.8 billion as of 30 June 2025 [8].
Funding Circle reported strong revenue and profit margin growth in the first half of 2025, with the term loans business improving profit margins due to operating leverage and cost actions taken in 2024 [9]. The group's performance in the first half of 2025 is a testament to the strength of its brand, technology, and credit decisioning.
In addition to its growth strategies, Funding Circle has been running promotions to incentivise businesses to adopt its services. For instance, businesses using FlexiPay can receive a £50 Amazon.co.uk Gift Card for completing a successful transaction over £100 during a specified promotion period [1].
As Funding Circle continues to grow and expand its services, it remains committed to supporting SMEs across the UK, helping them to grow and succeed. With its robust financial performance, strategic partnerships, and innovative products, the company is well-positioned to meet its medium-term goals and continue its growth trajectory.
References: [1] Funding Circle (2025). Funding Circle Announces Third Share Buyback Program. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circle-announces-third-share-buyback-program
[2] Funding Circle (2025). Funding Circle Expects Strong Financial Performance in 2026. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circle-expects-strong-financial-performance-in-2026
[3] Jacobs, L. (2025). Funding Circle CEO Expresses Confidence in Company's Growth. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circle-ceo-expresses-confidence-in-companys-growth
[4] Funding Circle (2025). Funding Circle's FlexiPay Surpasses £1bn in Credit Extended. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circles-flexipay-surpasses-1bn-in-credit-extended
[5] Funding Circle (2025). Funding Circle Strengthens its Ability to Support SMEs. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circle-strengthens-its-ability-to-support-smes
[6] Funding Circle (2022). What is FlexiPay? [online] Available at: https://www.fundingcircle.com/en/business/flexipay/what-is-flexipay
[7] Funding Circle (2025). Funding Circle Reports Strong First Half Performance. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circle-reports-strong-first-half-performance
[8] Funding Circle (2025). Funding Circle's Balances Under Management Reach £2.8bn. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circles-balances-under-management-reach-28bn
[9] Funding Circle (2025). Funding Circle's Term Loans Business Improves Profit Margins. [online] Available at: https://www.fundingcircle.com/en/news/press-releases/funding-circles-term-loans-business-improves-profit-margins
Funding Circle's business strategy is focused on expanding its financial offerings for small and medium-sized enterprises (SMEs), with a significant portion of this growth coming from its FlexiPay service. This line of credit for SMEs has shown robust performance, contributing to the overall growth of Funding Circle's business.
In its pursuit of supporting more SMEs, Funding Circle expects to surpass £200 million in revenue and £30 million in pre-tax profit for the full year 2026, demonstrating the strength of its business model and financial performance.
