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How are the Funding Circle risk bands set?

Funding Circle’s risk bands are based on a number of factors including data sourced from leading credit agencies, data suppliers and financial information the business supplies to us.

A number of major banks and businesses use this data in their decisions on whether to extend credit or trade credit to businesses.

Over 1,500 factors are taken into account when assigning a risk band, including:

  • Director's commercial track record
  • Director's consumer scorecards
  • Financial trend information
  • Commercial invoice payment performance
  • Size and age of business
  • Industry sectors and geographical region
  • County Court Judgements and bankruptcies (current and historical)
  • Latest management accounts
  • Director's consumer information
  • Loan purpose

Experienced Funding Circle credit assessors review all loan applications before they are allowed to list loan requests on the website. Only businesses that we determine to be creditworthy are allowed to borrow through Funding Circle.

The risk bands range from A+ to E, where A+ is lowest risk.

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