Funding Circle Debts

Are you a company director being chased from Funding Circle for outstanding debts?

It is important to understand that Funding Circle lending comes with personal guarantees.

So just ignoring the debts could cause issues for the business closure and personal debts.

Interested In Finding Out More About The Debt Solutions Available?

Find Out More

Our Funding Circle guide explains everything you need to know about repayments to Funding Circle and if these debts can be legally written off.

Who is Funding Circle?

Funding Circle Limited is a commercial lender that offers fast, affordable business loans to small companies.

Their business address is Funding Circle Limited, 71 Queen Victoria Street, London, EC4V 4AY.

You can borrow from £10,000 up to £500,000 from FC and apply in minutes online.

Funding Circle Limited is one of the largest providers of the Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan.

The CBIL Scheme helps small and medium-sized businesses that have been struggling due to the impact of COVID-19.

Why is Funding Circle contacting me?

If Funding Circle Limited has chased you, it’s probably because you owe money to a different creditor or Funding Circle Limited themselves.

Funding Circle chases bad debt for other companies, so your original creditor may have passed on the bad debt to FC rather than deciding to chase it themselves.

If you want to find out who your original creditor is, simply ask Funding Circle for Proof of Debt.

Should I pay Funding Circle the money I owe?

You should always aim to repay any bad debts you hold with Funding Circle, as there can be detrimental consequences if you don’t.

Ignoring your bad debts will allow them to grow, and you may even face court action from your creditor if you continue to stick your head in the sand.

Proof of Debt

You should never ignore your debts; however, you should check a few things before making any payments, such as Proof of Debt.

Proof of Debt will confirm the amount of debt and the company to whom you owed and owe the debt.

If Funding Circle Limited cannot produce a Proof of Debt document, you do not have to pay.

Statue-barred

Check to see if your debt can be classified as statute-barred.

If your debts haven’t been paid or chased within the past six years, you can have your debt written off.

Your creditors cannot chase statute-barred debt.

Will Funding Circle come to my house?

If you continuously ignore Funding Circle Limited, there is a high probability that an enforcement agent will come to pay a home visit.

Debt collection agents must give notice of their visits; they cannot show up at your property unannounced.

Can Funding Circle come into my house?

Funding Circle cannot enter your home without your permission unless they have first been granted a warrant from the court.

If a bailiff or enforcement agent attempts to enter your property without being permitted, you should call bailiff helpline services or the police.

Find Out More About Popular Debt Solutions

Find Out More

Could my Funding Circle debts mean that I lose my home?

While it is highly unlikely that you would lose your home, it is still possible that your home could be repossessed if you fail to make any payments toward your FC debts.

Typically, debt is unsecured, so there aren’t any assets secured against the loans. However, if you keep avoiding payment, Funding Circle Limited could ask the court to secure your home against your debt.

Funding Circle will apply for a County Court Judgment and a Charging Order to do this. Find out how to get a CCJ discharged from your files.

How do I get in contact with Funding Circle Limited?

You can contact Funding Circle Limited using the following methods:

  • Phone them on 08000482467.
  • Contact them using their enquiry form.
  • Post to their address at Funding Circle Ltd, 71 Queen Victoria Street, London, EC4V 4AY.

Funding Circle’s opening hours are Monday to Thursday, from 9 AM to 6 PM, and Fridays, from 9 AM to 4:30 PM. Bank holidays may vary.

Be aware that Funding Circle cannot take credit applications by phone or post.

Keep reading to find out how to make a complaint about Funding Circle Limited.

What can Funding Circle bailiffs do?

Funding Circle is regulated by the Financial Conduct Authority and must follow an ethical code of conduct for any legal action they take out to reclaim the outstanding debt.

Funding Circle bailiffs are permitted to take the following action:

  • Visit the borrowers’ home addresses and encourage them to make a payment.
  • Contact borrowers via email, letter, or phone to discuss payments.
  • Add charges and interest rates to the borrowers’ debt if they fail to make payments.
  • Send high court enforcement agents to claim borrowers’ assets as security for their loans.
  • File for a County Court Judgement, as well as additional court orders.

The list above notes just a few permitted services that creditors can take to receive their repayments for business loan parts.

What can’t Funding Circle bailiffs do?

Funding Circle bailiffs are not permitted to take the following action to reclaim debt for their investors:

  • Use manipulative or confusing legal jargon or threaten false legal action.
  • Provide false information to a borrower about their debt.
  • Threaten or intimidate the borrower into paying money toward their loans.
  • Force their way onto the borrowers’ property without valid warrants.
  • Call a lender at work or unreasonable hours.

If you feel Funding Circle Limited have taken unreasonable steps towards reclaiming your Funding Circle loans, then you should file a complaint or call the police.

What happens if I don’t pay Funding Circle?

If you refuse to pay Funding Circle Limited, further legal action may be taken against you to ensure you meet your monthly repayments.

For example, if you fail to meet your payment plan, your investors or creditors might try to take you to court to discuss your debts and order you to pay.

If the situation worsens, you might be forced into bankruptcy, negatively impacting your credit rating.

A low credit score can make other areas of your finances much harder, so it is in your best interest to repay your debts to Funding Circle Limited.

Who do I contact if I’m worried about my repayments?

If you are worried you won’t meet your Funding Circle Limited repayments; you can contact them to discuss your options via the following methods:

How do you make a complaint about Funding Circle?

You can make a complaint about Funding Circle Limited via the following methods:

  • Post your written complaint to Funding Circle Ltd, 71 Queen Victoria Street, London, EC4V 4AY.
  • Email your complaint to [email protected].
  • Call 02034675669 to discuss your complaint.

If you are unhappy with how Funding Circle Limited have handled your complaint, you can escalate your concerns to the Financial Ombudsman Service.

Funding Circle enforcement fees

Funding Circle can add various enforcement fees to your bad debts if you refuse to pay:

  • Compliance stage – At this stage, you will be made to pay £75 per notice or attempt at contact.
  • Enforcement stage – For every enforcement, you will be made to pay £235 and a 7.5% rate on anything over £1,500.
  • Sales of goods stage – If your assets are up for sale, you will be made to pay £110 and a 7.5% rate on anything over £1,500.

Avoiding payments will only add more to your Funding Circle account, so it is important to negotiate an affordable monthly repayment plan to meet your instalments on time.

How can I stop bailiffs from Funding Circle?

The best way to stop bailiffs from Funding Circle Limited is to meet your monthly payments on time.

If you promptly meet your payments, then Funding Circle has no reason to send collectors to try to reclaim your money.

Should you struggle to cover the cost of your debt each month, it is wise to communicate openly with Funding Circle and see if they will lower your payments.

Ignoring them will only result in further harassment from bailiffs or enforcement agents.

What if I can’t pay Funding Circle?

If you cannot afford your lending payments, there are debt solutions you should consider that will help you pay off your investment loans.

Debt management plan

A debt management plan is a popular debt solution for customers in the UK, as it allows lenders to freeze their interest rates.

Alternatively known as a DMP, debt management plans allow debtors to settle their loans without paying additional rates.

No interest rates, via your debt management plan, means you can make lower debt payments to Funding Circle and meet their investors’ instalments.

Find the best debt management companies in the UK today.

IVA

An Individual Voluntary Arrangement, or IVA, helps you reimburse investors over a longer period.

With an IVA, you avoid paying interest rates, and your lenders have limited access to chasing you to collect your debt.

You make agreed payments to your debt, but you must let your IVA provider know about any increases in your finances, and you cannot take out further credit without their permission.

Typically, an IVA lasts for around six years. After six years, the remaining debt is written off, and your lenders can no longer chase the debt.

Learn more about the IVA process by reading our informative article.

Debt relief order

You could consider a debt relief order or DRO if you struggle to meet your payments.

A DRO helps you with debt management, giving you a whole year free from debt payments.

In this time, you can save money easier and sort out your financial situation without the mounting pressure of debt on your back.

Bankruptcy

As a last resort, you may consider bankruptcy; however, bankruptcy should be carefully considered as it can detrimentally impact other aspects of your finances, such as your credit rating.

There is a range of alternatives to bankruptcy that you should consider first.

If bankruptcy is the only solution, your assets may be sold to cover your debt. You may still owe money from your businesses if your assets don’t cover your debt.

Want To Know More About The Best Debt Solutions Available?

Find Out More

FAQs

Does the Financial Services Compensation Scheme cover Funding Circle?

Unfortunately, Funding Circle is not covered by the FSCS.

However, they are registered with the Financial Conduct Authority.

Does Funding Circle conduct a credit check?

Funding Circle conducts a hard credit check on shareholders and businesses before confirming loans.

The hard checks are designed to complete any fraud, anti-money laundering and verification protocols and to analyse the creditworthiness of potential customers seeking investment.

The credit checks will appear on the lender’s personal and business credit files.

Does Funding Circle have a minimum credit score?

To qualify for a business advance through FC, you must have a personal FICO credit score of at least 660.

Managing an account with FC may be difficult if you do not meet this credit limitation.

You may not manage to secure an FC lending if you have been bankrupt within the last year, as your circumstances might highlight you are not a reliable lender.

FC don’t want to spread themselves too thin, and they only have an interest in lending to companies or individuals they believe will be able to clear their debt.

Am I eligible for a Funding Circle business loan?

You are deemed eligible for a business loan with Funding Circle if the following is true:

  • You have a minimum of 2 years of trading experience.

If you want to apply for an RLS, the following must also be true:

  • Your business has been impacted by COVID-19.
  • Your business trades in the UK.
  • Your loan will be used for business purposes only.

Can I be taken to court by Funding Circle because of my debt?

Yes, if you owe Funding Circle money and do not meet your payments toward your debt, then FC may sue you, which may be difficult.

For example, if Funding Circle Limited wins its case, it will be granted a court order forcing you to put toward your debt account.

This can make circumstances more difficult if you have limited funds and cannot spread the fees as you wish.

Can my business pay back an FC loan early?

You can clear any loans from Funding Circle back early; however, there are some restrictions depending on what kind of debt it is.

For example, for CBILS loans, you can clear your debt any time after the first four months, with no early returns fee added to your account.

You can clear your debt in full at any time for early payments towards RLS or BBLS debt without adding additional fees to your debt account.

How does Funding Circle make money?

FC charges a completion fee to businesses looking to take out loans.

An annual 1% servicing charge is added for investors opting to lend through FC.

So, by adding small fees to the lending and borrowing process, Funding Circle makes a profit.

Has Funding Circle Limited stopped lending?

During the Coronavirus pandemic, Funding Circle suspended any new lending from retail investors.

They have now decided to permanently stop any new lending investments, including loans from the Secondary Market.

Any existing loans will be managed until the loans have been paid off completely.

So, Funding Circle is still lending to companies, but they are not taking on new investors.

How long has Funding Circle existed?

FC was launched in 2010 by Samir Desai.

They have been operating for 12 years and have lent to over 118,000 companies. On estimate, their lending has launched 135,000 jobs across the UK.

Summary

Funding Circle Limited may have contacted you if you have uncleared debt or if you have not been able to manage your payments.

It is in your best interest to meet your lending instalments; however, we know that is easier said than done in some situations.

Our article has highlighted debt solutions that will help you manage your finances and clear your debts.

For debt help services, read our list of the best debt charity services in the UK now.

You don’t have to slip deep into persistent debt; you can escape debt with a little guidance and help.

Struggling To Pay Business Debts

Here are some other business debt guides if you are struggling with different types of debts:

Business Debt Help

Speak to the professional business advisor to check what business finance solutions you have.

Quick Links

Personal Guarantees CVL Debt Help CVA Debt Help Business Debt Solutions

Find the best business debt solution