The fundamental difference
Before comparing rates and fees, it is worth understanding that multifi Flexi Credit and Funding Circle serve structurally different purposes. multifi provides a revolving credit facility — a pot of money you can draw from, repay, and draw again, repeatedly, without reapplying. Funding Circle provides fixed-term business loans — a lump sum disbursed upfront and repaid in fixed instalments over an agreed term.
This means the right product depends on what you need the money for. For recurring working capital — paying suppliers ahead of customer payments, managing seasonal cashflow — a revolving facility is almost always more efficient. For a one-off capital investment — new equipment, a refurbishment, a specific project — a term loan may suit better.
Side-by-side comparison
| Feature | multifi Flexi Credit | Funding Circle Business Loan |
|---|---|---|
| Product type | Revolving credit facility | Fixed-term business loan |
| Loan / facility amount | £10,000 – £350,000 | £10,000 – £500,000 |
| Interest rate | From 1.99% per month | From 7.9% p.a. (representative) |
| Interest charged on | Drawn funds only — never on unused limit | Full loan amount from day one |
| Origination / setup fee | £0 | 0.9%–6.99% of loan amount (deducted from proceeds) |
| Platform fee | £0 | £0 |
| Early repayment fee | £0 | May apply — check terms |
| Repayment structure | Fixed monthly instalments on drawn amount | Fixed monthly instalments on full loan |
| Repayment term | 6–9 months per draw | 6 months – 6 years |
| First repayment | Not due for 60 days | Monthly from disbursement |
| Revolving / reload | Yes — automatic at 66% repaid, no reapplication | No — new application required for additional borrowing |
| Decision speed | Typically within 24 hours | Typically within 24–72 hours |
| Documents required | None under £100,000 (Open Banking only) | Accounts, bank statements typically required |
| Min. trading history | 12 months | 2 years |
| Min. annual turnover | £120,000 | £50,000 (approximate) |
| Security required | Personal guarantee only | Personal guarantee (debenture may apply for larger amounts) |
| FCA regulated | Yes — via Modulr FS Ltd, FRN 900573 | Yes — FCA authorised, FRN 722513 |
Key differences explained
Origination fees — a significant cost difference
Funding Circle charges origination fees of 0.9% to 6.99% of the loan amount, deducted from the proceeds before funds are disbursed. On a £100,000 loan at a 5% origination fee, the business receives £95,000 but repays £100,000 plus interest — increasing the effective cost substantially above the headline interest rate. multifi charges zero origination fees. The only cost is interest on drawn funds.
Revolving vs one-off
A Funding Circle term loan is used once and repaid. If a business needs further finance, a new application is required. multifi Flexi Credit reloads automatically — making it a permanent working capital tool rather than a transactional product. For businesses with recurring cashflow needs, this structural difference has a significant impact on the total cost and friction of borrowing over time.
Trading history requirement
Funding Circle typically requires 2 years of trading history. multifi requires 12 months. For businesses between 1 and 2 years old, multifi may be the only option of the two.
Representative example — multifi Flexi Credit
Which product is right for your business?
Choose multifi Flexi Credit if:
- You need recurring working capital — not a one-off investment
- You want to draw only what you need, when you need it
- Zero fees is important — especially no origination fee
- You want a facility that reloads automatically
- You have been trading for 12+ months (rather than 2 years)
- You want a decision in 24 hours without providing accounts
Consider Funding Circle if:
- You need a larger one-off sum for capital investment (up to £500,000)
- You need a longer repayment term (up to 6 years)
- You have 2+ years of trading history and established accounts
- You prefer a fixed repayment schedule over a revolving structure
The bottom line
multifi and Funding Circle are not direct competitors — they serve different needs. Funding Circle is a marketplace lender providing fixed-term loans for capital investment. multifi provides a revolving working capital facility. The key practical differences are: multifi charges zero origination fees (Funding Circle charges up to 6.99%); multifi requires only 12 months trading (Funding Circle typically 2 years); and multifi's revolving structure means businesses can reuse the facility without reapplying, while a Funding Circle loan is a one-time transaction.
For working capital, multifi is likely the more efficient and lower-cost option. For longer-term capital investment, Funding Circle's extended terms may suit better.
Frequently asked questions
What is the difference between multifi Flexi Credit and a Funding Circle business loan?
multifi Flexi Credit is a revolving credit facility — draw, repay, and reload without reapplying — with zero fees and interest from 1.99% per month on drawn funds only. Funding Circle provides fixed-term business loans with origination fees of 0.9%–6.99% and repayment terms up to 6 years. Different products for different needs.
Does Funding Circle charge origination fees?
Yes. Funding Circle origination fees range from 0.9% to 6.99% depending on risk profile, deducted from loan proceeds. multifi charges zero origination fees, zero setup fees, zero platform fees, and zero early repayment fees.
Is multifi or Funding Circle better for working capital?
For recurring working capital needs, a revolving credit facility like multifi is typically more efficient — draw only what you need, repay it, and reload without reapplying. Funding Circle's fixed-term loan structure is better suited to one-off capital investment than ongoing cashflow management.