Funding Circle Borrower Agreement

1.0 - Introduction

1.1 - This is the agreement forming the basis of the relationship between you and us. It explains what you can expect from us and what we expect from you if you use our products and services.

1.2 - You are the limited company, partnership, unincorporated association or sole trader that is registering with Funding Circle and/or applying for a product with us. The person who registers with Funding Circle on your behalf must be properly authorised to represent you in entering into this agreement with us.

1.3 - We/us/Funding Circle are Funding Circle Ltd.

1.4 - By registering with Funding Circle, you agree to this agreement with us.

1.5 - This agreement comprises a set of general terms and conditions, our fees and charges tariff, and supplemental conditions that apply to individual services or products that you have, or apply for, with us.

1.6 - The general terms and conditions are below and you can find all of the supplemental conditions at the end of the general terms and conditions. If any supplemental conditions conflict with the general terms and conditions, the supplemental conditions apply.

1.7 - All terms and conditions and our tariff of charges are always available on our website. Funding Circle's Website Terms of Use and Privacy Policy also apply to you.

2.0 - Can Funding Circle change this agreement?

2.1 - Yes. We may make changes to any part of this agreement from time to time. We will let you know if we are doing so either through the website or by contacting you directly. If any changes might impact you negatively we will let you know in advance of making them.

2.2 - If you have a FlexiPay Account and/or a Business Card: We can change any part of your agreement including any fees and charges that apply and we can introduce new fees and charges or change the circumstances in which they are applied and the services we provide to you, from time to time. We will give you at least 1 month's notice in advance of any changes to our fees and charges or the circumstances in which they apply. If you do not wish to accept the changes we notify to you, you can end your agreement without charge by giving us notice and paying your balance in full before the changes take effect.

3.0 - What do you need to know about registering with Funding Circle?

3.1 - When you register with us, you will create a username and password. You will also have to give us some personal information, including ways we can contact you and details for your nominated bank account. Your nominated bank account will be the account into which we transfer any funds payable to you in connection with a term loan product. You must keep all information that you give to us up to date. For payments made through FlexiPay or your Business Card, see: Supplemental Conditions - Funding Circle FlexiPay.

3.2 - You must keep your Funding Circle username and password secure at all times. You must not transfer your Funding Circle registration to another person or permit another person to use it without our prior consent. We will assume that all activity by your username is by you.

3.3 - We may de-register you if you breach this agreement (or any other terms that apply to your relationship with us or a member of the Funding Circle corporate group), or if we think that you might have been involved in fraudulent, suspicious or otherwise inappropriate activity (including misusing the Funding Circle platform and/or website, app and/or our services in any way).

3.4 - If we de-register you while you have a product with us, we will continue to allow you to access your Funding Circle account but we may restrict the services you can use.

3.5 - If you don't have a product with us, you can de-register at any time. If you have a product with us, you will not be able to de-register until you have terminated all products and, if you have any outstanding debt under those products, paid it off in full.

4.0 - What do you need to know about applying for products with Funding Circle?

4.1 - You must be registered with Funding Circle before you can apply for a product.

4.2 - If you are a third party applying for a product on behalf of your client, we will assume that you have the full authority of your client and that your client has read and accepted this agreement.

5.0 - What does Funding Circle do?

5.1 - If you successfully apply for a product with us, we will match you with a lender who will enter into a contract with you. We may perform the following services on behalf of the lender in relation to that contract:

5.1.1 - assessing your creditworthiness and deciding whether you meet the applicable eligibility criteria

5.1.2 - preparing and providing your contract and any security document or guarantee (and any variations that might be needed to those documents)

5.1.3 - advancing funds

5.1.4 - collecting repayments

5.1.5 - collecting arrears and/or enforcing your contract (including enforcing any guarantee or security)

5.1.6 - resolving complaints

5.2 - Neither we nor any other Funding Circle group company will be liable to you for any loss or damage sustained by you in connection with the proper performance of these services by us, or arising from circumstances beyond our reasonable control.

6.0 - What do you need to know about having a product with Funding Circle?

6.1 - If you have a product with us, you must give us any information that we ask for (which we may do at any time) about your financial condition, business and affairs, and compliance with any contract with a lender or other contract you may have concluded with a third party using our services.

6.2 - You permit us, our agents or any other third party business advisory or audit professionals, on reasonable notice and during business hours to attend and inspect your premises, any secured assets and any of your books, accounts and records and to make copies of these. You also agree to meet with any such person to answer their reasonable queries within 21 days of our request.

7.0 - Are there any restrictions on how I can use a Funding Circle product?

7.1 - Yes. Funding Circle products may be used for working capital and business purposes only. You must not use a Funding Circle product for any personal expenditure and Funding Circle reserves the right to suspend your account and request repayment on demand in such an instance. Without limitation to the foregoing, you must not use Funding Circle products to repay credit, finance or other debt owed by you (or any company in your group) to Funding Circle or anyone else except for any permitted debt consolidations approved by Funding Circle.

8.0 - What are Funding Circle's fees and charges?

8.1 - From time to time, we may incur third party fees and charges in providing our services to you, such as disputed transaction fees, bank fees or payment processing charges. We will tell you about these fees or charges, and you authorise us to set-off or collect them from any payments due to you.

9.0 - Will my broker receive a fee for refering me to Funding Circle?

9.1 - If you are referred to Funding Circle via a broker, the broker will receive a fee from Funding Circle for any successful application for finance that results from the referral. This fee will be a percentage of the amount you receive under your finance agreement with Funding Circle.

9.2 - Your broker will also receive a fee from Funding Circle if you obtain further finance from us either during the term of your initial finance or after your initial finance has terminated, or if you return to Funding Circle for finance within a fixed period of time following our introduction. This is known as “trail commission” and is calculated as a percentage of the amount you receive under your further finance agreement with Funding Circle. If you require any further information on the fee(s) your broker will receive, you should feel free to request this information from your broker at any time.

10.0 - What happens if we make you an offer through our Marketplace?

10.1 - We might be able to meet your finance needs through our Marketplace, either because we are not able to offer finance to you directly or because we can find additional offers from other lenders via our Marketplace.

10.2 - By applying for one of our products, you agree that, subject to the terms of our privacy policy (a copy of which is available here), we may share your data (including personal data and financial information) with our Marketplace partners to help you to obtain finance. A list of our marketplace partners can be found here.

11.0 - How can you make a complaint?

11.1 - We always try to offer the best service possible. However, if you are unhappy with any service or product offered by us or any Funding Circle Company, please contact us by email (complaints@fundingcircle.com) or by telephone (0203 467 5669). We will endeavour to resolve your complaint as quickly and as fairly as possible.

11.2 - If you're not satisfied with our efforts to resolve the complaint, and you are an eligible small business, you can refer your complaint to the Financial Ombudsman Service. For more details, or to check your eligibility, you can visit their website at sme.financial-ombudsman.org.uk.

12.0 - How do we contact each other?

12.1 - If you have any questions or queries, you should contact us by email at contactus@fundingcircle.com or by telephone on 020 7401 9111. If you have FlexiPay, you should contact us by email at flexipay@fundingcircle.com or by telephone on 0203 308 9693.

12.2 - We will contact you in any way that feels appropriate to us, including via the Funding Circle website or by email or by writing to you using the details you have given us. We might also send you email prompts from time to time to remind you to log into and check your Funding Circle account.

13.0 - What is the other legal info you need to know?

13.1 - No reliance. You confirm that you have not relied on any representation, written statement, advice, opinion or information made or provided by us or on our behalf. You further confirm that you have been, and will continue to be, solely responsible for making your own independent appraisal and investigation of all risks arising under or in connection with this agreement.

13.2 - Severance. If any provision of this agreement is found to be illegal, invalid or unenforceable by any court of competent jurisdiction, this will not affect the validity and enforceability of the remaining provisions.

13.3 - Waiver. Our rights under this agreement may be exercised as often as necessary, are cumulative and not exclusive of any rights or remedies provided by law. Delay in the exercise of any right granted to us in this agreement is not a waiver of that right.

13.4 This agreement is governed by and construed in accordance with English law. If any dispute (whether contractual or non-contractual) arises out of, or in connection with, this agreement, you and we each submit to the non-exclusive jurisdiction of the English courts.

1.0 - What do you need to know about applying for a Funding Circle Business Loan?

1.1 - The person applying for a loan must be properly authorised to represent you in doing so.

1.2 - We do not guarantee that your application for a loan made through us will be successful. When you apply for a loan, we will assess you against any eligibility criteria that apply. These eligibility criteria may change from time to time. If you no longer meet the eligibility criteria for your loan, we may decide to restrict the Funding Circle services you can use.

1.3 - When you apply:

1.3.1 - The information you give us must be true, accurate and up to date in all respects and not misleading

1.3.2 - You must disclose to us all matters that you are aware of (including but not limited to any legal claims, undisclosed liabilities, litigation, court proceedings or investigations which are current, threatened, pending or otherwise reasonably likely to occur against you by any third party) which could materially and adversely change your financial condition, business or assets. You must also inform us if there is any change in these circumstances

1.3.3 - You must not omit to tell us any information which could reasonably be considered relevant to an application for finance

1.3.4 - We will collect information about you, your business and people connected with your business from third parties in connection with your loan application and the intermediary services we provide, including to verify your identity. We cannot guarantee the accuracy of the information we obtain from third parties, and we accept no responsibility or liability for the accuracy or inaccuracy of that information or any decisions we take based on that information.

1.4 - If your application is successful, you will enter into a loan contract with a lender, and we will have certain rights under that agreement (as a third party) to enable us to properly perform our role as ‘servicer’ of your loan contract. If there is any conflict between this agreement and your loan contract with a lender, your loan contract will take precedence.

1.5 - You must ensure that all documents we ask you to sign in relation to your loan (and any security) are validly executed by or on behalf of the borrower, or any guarantee is validly executed by the guarantor. We will only release your funds once all of our checks have been completed and all requirements satisfied. We may withdraw a lender's loan offer if our checks and requirements are not satisfied.

1.6 - If you have a loan through us, you must not, without our prior written consent, take out a loan, borrow any monies, or enter into any arrangement that has the effect of borrowing (other than asset-specific financing or invoice purchasing arrangements) from your directors, officers, members, partners, shareholders or any other third party in the following circumstances:

1.6.1 - The relevant loan ranks in priority of recovery to the loan you have through us. If this happens, we may require you to take such steps as are necessary to ensure that the rights to payment of the relevant loan are subordinated behind the loan you have through us, except to the extent otherwise required by insolvency law

1.6.2 - The relevant loan is unsecured, and is for a total amount exceeding £25,000 or 30% of the total amount you have borrowed through us (whichever is higher).

2.0 - What do you need to know about repaying your Funding Circle Business Loan?

2.1 - We will collect your monthly loan repayments on behalf of your lender and we will do so by direct debit unless we agree to collect it by other means (which may incur a fee). We will take your payment up to five days before the payment due date shown in your loan repayment schedule so that we can distribute it to the relevant lender.

2.2 - If you think that you may not be able to make a repayment due under your loan contract, you should contact us immediately.

2.3 - If any monthly loan repayment has not been made seven days or more after the payment due date, we may charge you a fee which will be payable immediately by you on demand. We may also charge you other costs associated with collection and enforcement. See ‘Are there any extra fees and charges that you should know about in relation to the loan?’ below and our fees and charges tariff for details.

2.4 - If you are behind on your payments or in default in respect of more than one loan, we will allocate payments received (including by way of realised security) in accordance with our internal policies and applicable law, which will always reflect the rules of any applicable government scheme.

2.5 - We may work with third party debt collection agencies in seeking to recover any outstanding debts and/or we may take other steps including (but not limited to) taking the following steps on behalf of your lender:

2.5.1 - Assigning any outstanding debts to debt purchasers

2.5.2 - Commencing formal legal action

2.5.3 - Insolvency processes.

2.6 - We will distribute your monthly loan repayment(s) to your lender to the extent possible, however if, as a result of our accounting system rounding your repayment to the nearest sum, a nominal cash balance accrues, your interest in that nominal cash balance will transfer to Funding Circle so that it can be donated to charity or otherwise applied at our discretion.

3.0 - Might you have to provide a personal guarantee for your loan?

3.1 - Yes. One or more shareholders may need to give a personal guarantee to secure your obligations under your loan contract. You will need to ensure that the shareholder(s) in question have read, understood and signed the terms of our personal guarantee before we release funds.

3.2 - Different rules apply for personal guarantees for loans entered into under the government's Recovery Loan Scheme – see the 'Supplemental Conditions - Funding Circle Business Loans under the Recovery Loan Scheme' section of this page for more details.

4.0 - Might you have to provide security for your loan?

4.1 - Yes. In certain circumstances you may be required to provide security (for example a debenture, mortgage or charge) to secure your obligations under your loan contract, for example if you breach any terms of your loan contract or wish to take out further lending with a third party.

4.2 - Any security taken in respect of your loan will be held by a company within the Funding Circle corporate group on behalf of the lender. The Funding Circle company holding the security will usually act through Funding Circle, but it may appoint an alternative agent to act on its behalf.

4.3 - The duties of Funding Circle and/or any Funding Circle company that holds your security are solely administrative in nature and Section 1 of the Trustee Act 2000 (which relates to the duty of care owed by trustees) will not apply. This agreement takes precedence over any legal provisions that might otherwise apply.

4.4 - Different rules apply for personal guarantees for loans entered into under the government's Recovery Loan Scheme –see the 'Supplemental Conditions - Funding Circle Business Loans under the Recovery Loan Scheme' section of this page for more details.

5.0 - What happens to the security if your loan is terminated?

5.1 - If you fail to make a repayment when due or a default event occurs under your loan contract, Funding Circle is entitled to terminate your loan contract on the lender's behalf and:

5.1.1 - Funding Circle and/or the Funding Circle company which holds the relevant security may take steps to enforce the security, and you must take all steps required to realise the security

5.1.2 - Funding Circle and/or the Funding Circle company which holds the relevant security may rely on any representation, notice or documents believed by us or it to be genuine, correct and appropriately authorised, and any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within their knowledge or power to verify

5.1.3 - Funding Circle and/or the Funding Circle company which holds the relevant security is entitled to recover from you, and be indemnified for, all costs incurred in connection with the security. These costs are payable on demand.

6.0 - Are there any extra fees and charges that you should know about in relation to the loan?

6.1 - The fees and charges associated with your loan are set out in your loan contract.

6.2 - If you do not comply with the terms of your loan contract, we will incur costs when carrying on collections and/or enforcement activities on behalf of the lender; and these will be charged to you. These can be found on our fees and charges tariff.

6.3 - We reserve the right to change any of the costs set out in our fees and charges tariff from time to time on notice to you.

6.4 - Different rules apply for personal guarantees for loans entered into under the government's Recovery Loan Scheme –see the 'Supplemental Conditions - Funding Circle Business Loans under the Recovery Loan Scheme' section of this page for more details.

1.0 - What is the Recovery Loan Scheme?

1.1 - From April 2021, if you are a UK business, you may be eligible to borrow through the Government's Recovery Loan Scheme (RLS). The RLS aims to help smaller businesses across the UK to access finance they may not have had access to commercially on equivalent terms. More information on this scheme can be found here.

1.2 - You can apply through the Funding Circle website for a loan under the RLS.

1.3 - If you receive an offer for a Funding Circle Business Loan under the RLS, the supplemental conditions for Funding Circle Business Loans will apply to your RLS Loan except as modified below. If any of these supplemental conditions for RLS Loans conflict with the general terms and conditions or the supplemental conditions for Funding Circle Business Loans, these supplemental conditions for RLS Loans will take precedence.

1.4 - Funding Circle became accredited for the third phase of RLS from July 2023 and this phase will apply to eligible Funding Circle Business Loans entered into from this date. If you entered into a Funding Circle Business Loan under the RLS before July 2023, the terms of your RLS Loan will remain unaffected.

2.0 - Might you have to provide a personal guarantee for your RLS Loan?

2.1 - Yes. In line with Funding Circle's standard policy, one or more directors/shareholders may need to give a personal guarantee to secure your obligations under your RLS loan. You will need to ensure that the director(s) / shareholder(s) in question have read, understood and signed the terms of our personal guarantee before we release funds.

3.0 - Might you have to provide security for your RLS Loan?

3.1 - You will not have to provide security at the point of origination of your RLS loan.

3.2 - Any security that Funding Circle puts in place at the point of origination will be in the form of a personal guarantee. Funding Circle may take security if any part of the RLS Loan Contract is breached, but Funding Circle will not at any point take security over your principal private residence in respect of the RLS loan.

4.0 - Are there any extra fees and charges that you should know about in relation to an RLS loan?

4.1 - As with all Funding Circle loans, the fees and charges associated with your loan are set out in your loan contract.

4.2 - If you do not comply with the terms of your loan contract, as with all Funding Circle loans, we will incur costs when carrying on collections and/or enforcement activities on behalf of the lender. These can be found on our fees and charges tariff.

4.3 - These fees and charges may be charged to you as long as the total cost to you does not exceed what is permitted under the RLS rules.

5.0 - What if your business has received government subsidies before?

5.1 - Loans provided through RLS are subsidies; a form of financial help supported by the government that gives an advantage to your business. The giving of subsidies is governed by UK law, and if you are a business in scope of the Northern Ireland Protocol, Europe regulations will be relevant. These laws limit the amount of subsidy you can receive over certain periods. More information on subsidy control and thresholds can be found here.

5.2 - As part of the application process for a Funding Circle Business Loan under the RLS, you will be required to self-certify that receipt of the RLS Loan will not breach any of the subsidy thresholds or exclusionary conditions.

5.3 - Your maximum threshold will depend on whether your business is inside or outside of the scope of the Northern Ireland Protocol.

5.4 - Any applicable exclusions will depend on the type of your business and the purpose for which you have applied for an RLS Loan.

6.0 - What are the key features of RLS and am I eligible?

6.1 - More information on RLS and eligibility criteria for RLS can be found here

1.0 - What is the Recovery Loan Scheme?

1.1 - From April 2021, UK businesses may be eligible to borrow through the Government’s Recovery Loan Scheme (RLS). The RLS aims to help businesses across the UK affected by Covid-19, providing support for businesses to recover and grow following the disruption of the pandemic. More information on this scheme can be found here.

1.2 - You can apply through the Funding Circle website for a loan under the RLS.

1.3 - If you receive an offer for a Funding Circle Business Loan under the RLS, the supplemental conditions for Funding Circle Business Loans will apply to your RLS Loan except as modified below. If any of these supplemental conditions for RLS Loans conflict with the general terms and conditions or the supplemental conditions for Funding Circle Business Loans, these supplemental conditions for RLS Loans will take precedence.

2.0 - Might you have to provide a personal guarantee for your RLS Loan?

2.1 - If your RLS loan amount is greater than £250,000, Funding Circle's standard policy for requiring personal guarantees will apply.

2.2 - If your RLS loan amount is £250,000 or below, you will not be required to provide a personal guarantee and no personal guarantee given under any other loan you have through us shall be used to recover any amounts you owe under your RLS loan.

3.0 - Might you have to provide security for your RLS Loan?

3.1 - If your RLS loan amount is greater than £250,000, Funding Circle's standard policy for requiring security will apply.

3.2 - If your RLS loan amount is £250,000 or below, you will not be required to provide security under the loan at any time.

4.0 - Are there any extra fees and charges that you should know about in relation to an RLS loan?

4.1 - As with all Funding Circle loans, the fees and charges associated with your loan are set out in your loan contract.

4.2 - If you do not comply with the terms of your loan contract, as with all Funding Circle loans, we will incur costs when carrying on collections and/or enforcement activities on behalf of the lender. These can be found on our fees and charges tariff.

4.3 - These fees and charges may be charged to you as long as the total cost to you does not exceed what is permitted under the RLS rules.

1.0 - What is Marketplace?

1.1 - As well as matching you with a Funding Circle lender directly, we might be able to arrange for the provision of finance through our network of third party finance partners.

2.0 - Who are Funding Circle’s finance partners?

2.1 - We act independently and do not have an exclusive relationship with any specific finance partner. Should a partner offer finance to you, you should ensure you understand the terms of such finance. We have no authority or ability to negotiate or vary the financing terms of any finance partner, and we cannot enter into any agreement on behalf of any finance partner.

3.0 - Does Funding Circle receive a fee for this service?

3.1 -If you receive funding from a finance partner, we will receive a fee from the partner for the introduction. Fees vary from partner to partner, and are usually calculated as a percentage of the amount you receive under your finance agreement with the relevant finance partner. Subject to the terms of the agreement we have with the finance partner, we typically also receive a fee from the finance partner if you obtain further finance from them either during the term of your initial finance or after your initial finance has terminated, or if you return to the same finance partner for finance within a fixed period of time following our introduction. This fee is known as “trail commission” and (subject to the terms between us and the finance partner) is usually calculated as a percentage of the amount you receive under your subsequent finance agreement with the partner.

3.2 - Typically, we set the value of the fee payable by the partner in return for the introduction, subject to the finance partner’s terms and conditions. Our fees are typically calculated as a percentage of the amount you receive under your finance arrangement with the partner. In most cases, the fee(s) we receive may affect the total amount you are required to pay under the finance agreement. We are transparent about the fees we receive; you are free to request this information from us at any time by emailing: marketplace@fundingcircle.com.

4.0 - What do we need from you?

4.1 - All information you provide to us should be complete and accurate. We are not responsible for incomplete or inaccurate data or statements you make or provide. If you fail to disclose any material information to us or to our finance partners, this could invalidate our finance partners’ contractual terms.

4.2 - Before entering into an agreement with any of our finance partners, you must disclose information about any and all other applications you have made for finance, whether with Funding Circle or any other provider of finance.

5.0 - Can an existing Funding Circle Business Loan borrower take a loan through Marketplace?

5.1 - If you have a live Funding Circle Business Loan, you have committed not to take further finance exceeding the higher of £25,000 or 30% of the total amount of your Funding Circle loan. Should you accept a finance partner’s offer through our Marketplace, these terms will serve as our written consent that you will not be in breach of that commitment. This consent does not apply if a finance partner (or any other finance provider) offers you finance outside of our Marketplace. In this scenario, you should contact us. We will not be responsible should you breach any covenants given in a loan agreement with any third party by accepting a loan arranged by our Marketplace.

6.0 - Will we run credit searches?

6.1 - It may be necessary for us to conduct credit searches against your business and/or relevant shareholders and/or directors before we refer you to a finance partner. A finance partner may also conduct credit searches against your business and/or relevant shareholders and/or directors as part of the referral. The nature of these searches vary from partner to partner.

6.2 - You should read section 4 of our privacy policy (sharing and disclosing your information) (here) for information on our use of your personal data through our Marketplace.

7.0 - What else do you need to know about Marketplace?

7.1 - We will act honestly, fairly and professionally when conducting business with you. We will let you know if, at any time while acting on your behalf, our interests conflict with your interests, and we will obtain your consent before continuing.

7.2 - You are free to contact us at any time to discuss any further requirements for funding.

7.3 - In addition to arranging for the provision of finance, if you declare that you are seeking asset finance specifically and the reason for the asset finance is the purchase of a vehicle, we may refer you to one of our partners who may be able to offer you a vehicle. We receive a flat fee for any referrals that result in the purchase of a vehicle. We also typically receive an additional fee if you return to the same partner to purchase another vehicle or, if, as well as purchasing a vehicle you also take out finance with the same partner or if you are referred by that partner to a third-party finance provider and subsequently obtain finance from that third party finance provider. This additional fee is usually calculated as a percentage of the total amount of funding obtained by the partner or third-party finance provider. The fee we receive may affect the amount you pay for the purchase of any vehicle.

1.0 - What is FlexiPay?

1.1 - FlexiPay credit account (your FlexiPay Account or FlexiPay) is an interest free line of credit (transaction fees apply) provided by Funding Circle which helps you manage your cash flow and spread cost. Subject to the product restrictions set out above (see Are there any restrictions on how I can use a Funding Circle product?), you can use FlexiPay to pay as many business expenses as you like up to your credit limit through your online FlexiPay account.

1.2 - We may also offer you a business credit card with your FlexiPay Account (Business Card). If we offer you a Business Card, you'll be able to use your credit line to make purchases for your business from any third party supplier that accepts Visa.

2.0 - What do you need to know about applying for FlexiPay?

2.1 - The person applying for FlexiPay must be a director of the borrower company (i.e. you).

2.2 - We do not guarantee that your application for FlexiPay will be successful. When you apply, we will assess you against our eligibility criteria. These eligibility criteria may change from time to time. If you no longer meet the eligibility criteria for FlexiPay, we may decide to restrict the Funding Circle services you can use.

2.3 - When you apply:

2.3.1 - The information you give us must be true, accurate and up to date in all respects and not misleading

2.3.2 - You must disclose to us all matters that you are aware of (including but not limited to any legal claims, undisclosed liabilities, litigation, court proceedings or investigations which are current, threatened, pending or otherwise reasonably likely to occur against you by any third party) which could materially and adversely change your financial condition, business or assets. You must also inform us if there is any change in these circumstances

2.3.3 - You must not omit to tell us any information which could reasonably be considered relevant to an application for finance

2.3.4 - We will collect information about you, your business and people connected with your business from third parties in connection with your loan application and the intermediary services we provide, including to verify your identity. We cannot guarantee the accuracy of the information we obtain from third parties, and we accept no responsibility or liability for the accuracy or inaccuracy of that information or any decisions we take based on that information

2.3.5 - We will ask you to set up multifactor authentication (MFA) for use of your FlexiPay Account, a two step process to verify you and your device. Each time you log in to your FlexiPay Account, you will be required to enter your mobile number and validate it through a code shared with you by SMS. This helps us to protect your FlexiPay Account against unauthorised use.

3.0 - Might you have to provide a personal guarantee for your FlexiPay line of credit?

3.1 - Yes. In certain circumstances, one or more directors / shareholders may need to give a personal guarantee to secure your obligations under your FlexiPay and/or Business Card agreement. You will need to ensure that the director(s) / shareholder(s) in question have read, understood and signed the terms of our personal guarantee before allow you to use FlexiPay and/or your Business Card.

4.0 - Might you have to provide security for your FlexiPay line of credit?

4.1 - Yes. In certain circumstances you may be required to provide security (for example a debenture, mortgage or charge) to secure your obligations under your FlexiPay and/or Business Card agreement, for example if you breach any terms or you wish to take out further lending with a third party.

4.2 - Any security taken in respect of FlexiPay will be held by a company within the Funding Circle corporate group. The Funding Circle company holding the security will usually act through Funding Circle, but it may appoint an alternative agent to act on its behalf.

4.3 - The duties of Funding Circle and/or any Funding Circle company that holds your security are solely administrative in nature and Section 1 of the Trustee Act 2000 (which relates to the duty of care owed by trustees) will not apply. This agreement takes precedence over any legal provisions that might otherwise apply.

5.0 - What happens if my FlexiPay application is successful?

5.1 - If your application is successful, you will enter into an Agreement with us for a FlexiPay Account and (if applicable) a Business Card credit line.

5.2 - As part of the application journey, we will also require you to open a dedicated payment account (your 'Payment Account') with a third party provider called Modulr FS Limited, a company registered in England and Wales with company number 09897919 ('Modulr'), which is authorised and regulated by the Financial Conduct Authority ('FCA') as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment service. Your Payment Account and related payment service are provided by Modulr FS Limited. By proceeding with your application you hereby confirm that you have read and accept the Modulr terms and conditions.

5.3 - Having a Payment Account means that, when you want to pay an invoice or expense using FlexiPay, you are able to log in to your FlexiPay Account, enter the details of the supplier and the amount to pay, and the supplier is paid in your company's name. You should allow 2 business days for transactions to be paid.

5.4 - Our Business Card is provided by our partner, Monavate Ltd ('Monavate') who are authorised by the FCA as a payment service provider and electronic money institution with registration number 901097 and are the issuer of the Business Card. By agreeing to use the Business Card you confirm that you have read and agree to the Monavate terms and conditions.

5.5 - You must ensure that all documents we ask you to sign in relation to FlexiPay or any associated security are validly executed by or on behalf of the borrower, and that any guarantee, is validy executed by the guarantor. We will only allow you to use FlexiPay when we are satisfied that all of our checks have been completed and all our requirements have been satisfied. We may withdraw our FlexiPay offer if our checks and requirements are not satisfied.

5.6 - We will only permit you to start (and continue) using FlexiPay if:

5.6.1 - you have a personal guarantee in place (in a form acceptable to us) for your liabilities in relation to our products;

5.6.2 - you satisfy our credit criteria. We may ask you to provide information to satisfy us in this regard; and

5.6.3 - you have opened a Payment Account with Modulr and, as part of that process, you have confirmed that you wish us to be an 'Authorised User'.

5.7 - You can only start (and continue) using a Business Card if you have a FlexiPay Account.

6.0 - What happens to the security / personal guarantee if your FlexiPay is terminated?

6.1 - If you fail to make a repayment when due or a default event occurs under your FlexiPay and/or Business Card credit line agreement, Funding Circle is entitled to terminate both agreements and:

6.1.1 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee may take steps to enforce the security / personal guarantee, and you must take all steps required to realise the security

6.1.2 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee may rely on any representation, notice or documents believed by us or it to be genuine, correct and appropriately authorised, and any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within their knowledge or power to verify

6.1.3 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee is entitled to recover from you, and be indemnified for, all costs incurred in connection with the security / personal guarantee. These costs are payable on demand.

7.0 - How does FlexiPay work?

7.1 - You can use your FlexiPay Account for the purpose of requesting payment of business invoices, bills or suppliers allowing you to spread the cost with no interest and a flat fee per transaction. While we try to make payment instantly, you should allow up to 2 business days for transactions to be paid.

7.2 - All payment requests made by you are your responsibility. Once you make a payment request, we may not be able to cancel that request before payment is made to the payee by Modulr. We accept no responsibility to cancel or withdraw your payment requests.

7.3 - If applicable, Monavate will be the issuer of your Business Card. You must keep the security details for your Business Card safe at all times in accordance with your agreement with Monavate. If we think the security of your Business Card has been compromised (for example, because you've shared your PIN or other security details with someone else) or if Monavate tell us they think the security of your Business Card has been comprised, we will ask Monavate to suspend your ability to use it. We'll cancel the suspension only once we're satisfied your Business Card details are safe and secure. We may change the issuer of your Business Card at any time.

7.4 - You can access up to date information about how you have used your FlexiPay Account and/or your Business Card by logging on to your FlexiPay Account at any time.

7.5 - You are required to pay monthly instalments to Funding Circle over a set number of months by Direct Debit from the nominated bank account you notify to us when you apply. You must pay all instalments due in full and without set-off or deduction unless required by law, in which case you will pay such additional amounts as is necessary to ensure the full net amount received by Funding Circle is at least equal to the deduction.

7.6 - Each time you initiate a payment from your FlexiPay Account, you will be required to authorise a Direct Debit mandate to pay the relevant instalments. We will take your payment from your nominated bank account up to five (5) days before the Due Dates specified. Credits and refunds to your FlexiPay Account will not be treated as repayments.

7.7 - If you are unable to pay your instalments when they are due, Funding Circle may permit you to enter into a repayment plan and allow you to pay smaller amounts over a longer period.

8.0 - What are the fees and charges that apply to FlexiPay?

8.1 - You must agree to specific FlexiPay and/or Business Card credit line agreement terms and conditions before you are accepted for FlexiPay. These will confirm your credit limit and the details of all fees and charges which apply.

8.2 - No interest is charged on the credit you use. Instead we charge a flat fee which is a percentage of each supplier payment you make using FlexiPay. If you have a Business Card, we will charge a monthly flat fee which is a percentage of the balance you have accrued using your Business Card.

8.3 - We charge a late fee if you do not pay your instalments on time, and we require you to indemnify us against any costs we incur in seeking repaying from you. If you do not comply with the terms of your FlexiPay and/or Business Card credit line agreement, we will incur costs when carrying on collections and/or enforcement activities and these will be charged to you. These can be found on our fees and charges tariff.

8.4 - We reserve the right to change any of the costs set out in our Fees and Charges Tariff from time to time on notice to you.

9.0 - Is there anything that I'm not allowed to use FlexiPay for?

9.1 - Yes. For so long as you have FlexiPay, you must not use your FlexiPay Account or Business Card to pay off any loan or other debt owed to us or anyone else except for any permitted debt consolidations approved by Funding Circle.

9.2 - You must also not use FlexiPay to pay any invoice raised by you, any holding company or any subsidiary of such holding company (and both 'holding company' and 'subsidiary' are as defined in section 1159, Companies Act 2006).

9.3 - You must take all reasonable steps to keep the access credentials for your Payment Account, including login details to your online FlexiPay Account such as password(s) and any other security-related details confidential and safe at all times.

9.4 - If you have FlexiPay, you must not, without our prior written consent, take out a loan, borrow any monies, or enter into any arrangement that has the effect of borrowing (other than asset-specific financing or invoice purchasing arrangements) from your directors, officers, members, partners, shareholders or any other third party in the following circumstances:

9.4.1 - The relevant loan ranks in priority of recovery to your FlexiPay and/or Business Card credit line. If this happens, we may require you to take such steps as are necessary to ensure that the rights to payment of the relevant loan are subordinated behind your FlexiPay and/or Business Card credit line agreement(s), except to the extent otherwise required by insolvency law

9.4.2 - The relevant loan is unsecured, and is for a total amount exceeding £25,000 or 30% of the total amount you have borrowed through us (whichever is higher).

10.0 - Other

10.1 - Funding Circle Ltd is a distributor of Modulr FS Limited, a company registered in England and Wales with company number 09897919, which is authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution (Firm Reference Number: 900573) for the issuance of electronic money and payment services.

10.2 - Your account and related payment services are provided by Modulr FS Limited. Whilst Electronic Money products are not covered by the Financial Services Compensation Scheme (FSCS) your funds will be held in one or more segregated accounts and the full value safeguarded in line with the Electronic Money Regulations 2011 - for more information please see website

1.0 - What is Funding Circle Cashback?

1.1 - Funding Circle Cashback is a business credit card which you can use to make purchases for your business from any third party supplier that accepts Visa (Business Card).

2.0 - What do you need to know about applying for Funding Circle Cashback?

2.1 - In order to use your Business Card you must first apply for a Funding Circle Cashback account (Account) and agree to the terms of your Funding Circle Cashback Credit Agreement which will confirm details of your credit limit and of all interest, fees and charges which apply (Credit Agreement).

2.2 - The person applying for an Account must be a director of the borrower company (i.e. you).

2.3 - We do not guarantee that your application for an Account will be successful. When you apply, we will assess you against our eligibility criteria. These eligibility criteria may change from time to time. If you no longer meet the eligibility criteria for an Account, we may decide to restrict the Funding Circle services you can use.

2.4 - When you apply:

2.4.1 - The information you give us must be true, accurate and up to date in all respects and not misleading

2.4.2 - You must disclose to us all matters that you are aware of (including but not limited to any legal claims, undisclosed liabilities, litigation, court proceedings or investigations which are current, threatened, pending or otherwise reasonably likely to occur against you by any third party) which could materially and adversely change your financial condition, business or assets. You must also inform us if there is any change in these circumstances

2.4.3 - You must not omit to tell us any information which could reasonably be considered relevant to an application for finance

2.4.4 - We will collect information about you, your business and people connected with your business from third parties in connection with your loan application and the intermediary services we provide, including to verify your identity. We cannot guarantee the accuracy of the information we obtain from third parties, and we accept no responsibility or liability for the accuracy or inaccuracy of that information or any decisions we take based on that information

2.4.5 - We will ask you to set up multi factor authentication for use of your Account, a two-step process to verify you and your device. Each time you log in to your Account, you will be required to enter your mobile number and validate it through a code shared with you by SMS. This helps us to protect your Account against unauthorised use.

3.0 - Might you have to provide a personal guarantee for your Funding Circle Cashback account?

3.1 - Yes. In certain circumstances, one or more directors / shareholders may need to give a personal guarantee to secure your obligations under your Credit Agreement. You will need to ensure that the director(s) / shareholder(s) in question have read, understood and signed the terms of our personal guarantee before allowing them to use your Business Card.

4.0 - Might you have to provide security for your Funding Circle Cashback account?

4.1 - Yes. In certain circumstances you may be required to provide security (for example a debenture, mortgage or charge) to secure your obligations under your Credit Agreement, for example if you breach any terms or you wish to take out further lending with a third party.

4.2 - Any security taken in respect of your Credit Agreement will be held by a company within the Funding Circle corporate group. The Funding Circle company holding the security (Security Agent) will usually act through Funding Circle, but it may appoint an alternative agent to act on its behalf.

4.3 - The duties of Funding Circle and/or the Security Agent are solely administrative in nature and Section 1 of the Trustee Act 2000 (which relates to the duty of care owed by trustees) will not apply. This agreement takes precedence over any legal provisions that might otherwise apply.

5.0 - What happens if my Funding Circle Cashback application is successful?

5.1 - If your application is successful, you will enter into an Agreement with us for borrowing on a Funding Circle Cashback Business Card.

5.2 - Your Business Card is provided by our partner, Monavate Ltd (Monavate) who are authorised by the FCA as a payment service provider and electronic money institution with registration number 901097 and are the issuer of the Business Card and the provider of payment services. By agreeing to use the Business Card you confirm that you have read and agree to the Monavate terms and conditions.

5.3 - You must ensure that all documents we ask you to sign in relation to Funding Circle Cashback or any associated security are validly executed by or on behalf of the borrower, and that any guarantee, is validly executed by the guarantor. We will only allow you to use Funding Circle Cashback when we are satisfied that all of our checks have been completed and all our requirements have been satisfied. We may withdraw our Funding Circle Cashback offer if our checks and requirements are not satisfied.

5.4 - We will only permit you to start (and continue) using Funding Circle Cashback if:

5.4.1 - you have a personal guarantee in place (in a form acceptable to us) for your liabilities in relation to our products; and

5.4.2 - you satisfy our credit criteria. We may ask you to provide information to satisfy us in this regard.

6.0 - What happens to the security / personal guarantee if your Funding Circle Cashback agreement is terminated?

6.1 - If you fail to make a payment when due or a default event occurs under your Credit Agreement, Funding Circle is entitled to terminate the agreement and:

6.1.1 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee may take steps to enforce the security / personal guarantee, and you / the guarantor(s) must take all steps required to realise the security.

6.1.2 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee may rely on any representation, notice or documents believed by us or it to be genuine, correct and appropriately authorised, and any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within their knowledge or power to verify.

6.1.3 - Funding Circle and/or the Funding Circle company which holds the relevant security / personal guarantee is entitled to recover from you / the guarantor(s), and be indemnified for, all costs incurred in connection with the security / personal guarantee. These costs are payable on demand.

7.0 - How does Funding Circle Cashback work?

7.1 - Monavate will issue your Business Card and send it to your nominated address. You must keep the security details for your Business Card safe at all times in accordance with your agreement with Monavate. If we think the security of your Business Card has been compromised (for example, because you've shared your PIN or other security details with someone else) or if Monavate tell us they think the security of your Business Card has been compromised, we will ask Monavate to suspend your ability to use it. We'll cancel the suspension only once we're satisfied your Business Card details are safe and secure. We may change the issuer of your Business Card at any time.

7.2 - You can use your Business Card to make payments (Card Transactions) with any merchant which accepts Visa. The outstanding amount of your Card Transactions, plus any interest and fees we have added to your Account, forms your ‘Balance’. Each month you must make a payment of at least 10% of your Balance (the Minimum Amount) by the Due Date. You can pay more than this, or you can pay the entire Balance each month.

7.3 - You can access up to date information about how you have used your Business Card, your Minimum Amount and your Due Date by logging on to your Account at any time.

8.0 - How does cashback work?

8.1 - You will receive 1% cashback applied as credit towards your Balance on all Card transactions for each Billing Period (as defined in the Credit Agreement) in which you pay at least the Minimum Amount. As long as you pay at least the Minimum Amount on the Due Date, you will receive 1% cashback on all Card Transactions from within that Billing Period (Cashback).

8.2 - You will start earning Cashback from your first Card Transaction. Cashback will be applied to your Balance in respect of Cashback earned in the previous Billing Period the day after we receive at least your Minimum Payment provided such payment is made on or before the Due Date.

8.3 - Cashback will reduce your overall Balance but we do not treat it as a repayment towards your Minimum Amount. That means you still need to pay at least the Minimum Amount, regardless of any Cashback earned within the preceding Billing Period.

8.4 - If you fail to pay at least the Minimum Amount by the Due Date, you will not be eligible to receive cashback earned on any Card Transactions in that Billing Period.

8.5 - You will only earn Cashback while you hold your Account. This means that you will stop earning Cashback from the date that you close your Account and you will forfeit your Cashback balance on the date that your Account is closed.

8.6 - You can see details of the Cashback earned in Billing Period (if any), as well as Cashback received throughout your agreement, by logging in to your Account

9.0 - What are the interest, fees and charges that apply to Funding Circle Cashback?

9.1 - You must agree to Monavate’s specific Business Card terms and conditions before you are accepted for Funding Circle Cashback.

9.2 - We charge a late fee if you do not pay your Minimum Amount by the Due Date on time, and we require you to indemnify us against any costs we incur in seeking payment from you. If you do not comply with the terms of your Credit Agreement, we will incur costs when carrying on collections and/or enforcement activities and these will be charged to you. These can be found on our fees and charges tariff.

9.3 - We reserve the right to change any of the costs set out in our Fees and Charges Tariff from time to time on notice to you.

9.4 - If our nominated payment processor receives a request from your bank or building society to reverse a payment that we have collected from you (known as a ‘chargeback’), we reserve the right to share a copy of your Credit Agreement with our payment processor on a confidential basis as evidence of the charge.

10.0 - Is there anything that I'm not allowed to use Funding Circle Cashback for?

10.1 - Yes. For so long as you have Funding Circle Cashback, you must not use your Business Card to pay off any loan or other debt owed to us or anyone else other than for debt consolidations permitted by Funding Circle.

10.2 - You must also not use your Business Card to pay any invoice raised by you, any holding company or any subsidiary of such holding company (and both 'holding company' and 'subsidiary' are as defined in section 1159, Companies Act 2006).

10.3 - You must take all reasonable steps to keep the access credentials for your online Account such as password(s) and any other security-related details confidential and safe at all times.

10.4 - If you have Funding Circle Cashback, you must not, without our prior written consent, take out a loan, borrow any monies, or enter into any arrangement that has the effect of borrowing (other than asset-specific financing or invoice purchasing arrangements) from your directors, officers, members, partners, shareholders or any other third party in the following circumstances:

10.4.1 - the relevant loan ranks in priority of recovery to your Funding Circle Cashback Balance. If this happens, we may require you to take such steps as are necessary to ensure that the rights to payment of the relevant loan are subordinated behind your Funding Circle Cashback Credit Limit, except to the extent otherwise required by insolvency law; or

10.4.2 - the relevant loan is unsecured, and is for a total amount exceeding £25,000 or 30% of the total amount you have borrowed through us (whichever is higher).

1.0 - What is the Growth Guarantee Scheme?

1.1 - From 1 July 2024, if you are a UK business, you may be eligible to borrow through the Government's Growth Guarantee (GGS). The GGS aims to help smaller businesses across the UK to access finance they may not have had access to commercially on equivalent terms. More information on this scheme can be found here.

1.3 - If you receive an offer for a Funding Circle Business Loan under the GGS, the supplemental conditions for Funding Circle Business Loans will apply to your GGS Loan except as modified below. If any of these supplemental conditions for GGS Loans conflict with the general terms and conditions or the supplemental conditions for Funding Circle Business Loans, these supplemental conditions for GGS Loans will take precedence.

1.4 - Funding Circle became accredited for the GGS from 1 July 2024 and this phase will apply to eligible Funding Circle Business Loans entered into from this date. If you entered into a Funding Circle Business Loan under the Recovery Loan Scheme (RLS) before 1 July 2024, the terms of your RLS Loan will remain unaffected.

2.0 - Might you have to provide a personal guarantee for your GGS Loan?

2.1 - Yes. In line with Funding Circle's standard policy, one or more directors/shareholders may need to give a personal guarantee to secure your obligations under your GGS loan. You will need to ensure that the director(s) / shareholder(s) in question have read, understood and signed the terms of our personal guarantee before we release funds.

3.0 - Might you have to provide security for your GGS Loan?

3.1 - You will not have to provide security at the point of origination of your GGS loan.

3.2 - Any security that Funding Circle puts in place at the point of origination will be in the form of a personal guarantee. Funding Circle may take security if any part of the GGS Loan Contract is breached, but Funding Circle will not at any point take security over your principal private residence in respect of the GGS loan.

4.0 - Are there any extra fees and charges that you should know about in relation to an GGS loan?

4.1 - As with all Funding Circle loans, the fees and charges associated with your loan are set out in your loan contract.

4.2 - If you do not comply with the terms of your loan contract, as with all Funding Circle loans, we will incur costs when carrying on collections and/or enforcement activities on behalf of the lender. These can be found on our fees and charges tariff.

4.3 - These fees and charges may be charged to you as long as the total cost to you does not exceed what is permitted under the GGS rules.

5.0 - What if your business has received government subsidies before?

5.1 - Loans provided through GGS are subsidies; a form of financial help supported by the government that gives an advantage to your business. The giving of subsidies is governed by UK law and these laws limit the amount of subsidy you can receive over certain periods. More information on subsidy control and thresholds can be found here.

5.2 - As part of the application process for a Funding Circle Business Loan under the GGS, you will be required to self-certify that receipt of the GGS Loan will not breach any of the subsidy thresholds or exclusionary conditions.

5.3 - Any applicable exclusions will depend on the type of your business and the purpose for which you have applied for an GGS Loan.

6.0 - What are the key features of GGS and am I eligible?

6.1 - More information on GGS and eligibility criteria for GGS can be found here.

Please refer to the Monavate Ltd Business Card Payment Terms

Please refer to the Modulr FS Limited FlexiPay Payment Account Terms and the Consumer Duty Explanatory Notes.

Effective from 1 April 2021

1.0 - Funding Circle has a legitimate interest both in investing in its own in-house recoveries team, and in instructing third party specialists as necessary, in each case to recover outstanding amounts owed by borrowers and personal guarantors under the terms of its loan contract, personal guarantees and the Funding Circle Borrower Agreement. Funding Circle is also committed to giving borrowers and personal guarantors the fairest customer experience through this process. With this in mind, the Administration Fee and the Collections Charge referred to below are designed to reflect both a genuine pre-estimate of the costs to Funding Circle of conducting these debt collection and recovery activities (either in-house or through third party debt recovery specialists), and a commercially reasonable and proportionate charging framework for the enforcement on behalf of the lenders of the borrower's and personal guarantors' repayment obligations under a loan contract.

2.0 - All fees, costs, charges, expenses and other amounts payable as set out above will accrue interest at the Interest Rate from the date they are charged or incurred until payment.