Funding Circle Commercial Vessel Finance - Current Rates
| Finance Type | APR Range | Max Term | Max LTV | Min Loan | Typical Use |
|---|---|---|---|---|---|
| Hire Purchase (HP) | 7.9%–14.5% | 5 years | 70% | £10,000 | Ownership at end of term |
| Finance Lease | 7.9%–14.5% | 5 years | 70% | £10,000 | Off-balance-sheet option |
| Refinance / Equity Release | 7.9%–14.5% | 5 years | 70% | £10,000 | Release capital from existing vessel |
Rates correct as at October 2026 and subject to change. Individual rates depend on business profile, vessel type, LTV and term. Business lending - no consumer credit regulations apply.
About Funding Circle Commercial Vessel Finance
Funding Circle is the UK's largest peer-to-peer SME lending platform and has become an established option for commercial vessel finance where speed and digital simplicity are priorities. Their rate range of 7.9%–14.5% APR is risk-based, determined by their proprietary credit scoring algorithm rather than manual underwriting, which means decisions are fast - sometimes within 24 hours - but the rate offered may not be as competitive as a human-underwritten bank lender for strong applications. Funding Circle is best suited to established UK SMEs with clean credit profiles who need a quick decision and straightforward HP finance for a commercial vessel, and who value the digital application process. Their maximum 5-year term is shorter than all other lenders on this panel, which will result in higher monthly payments; this is the principal trade-off for their speed and accessibility. Minimum loan of £10,000 gives them accessibility comparable to Rankin for smaller vessel purchases. Funding Circle is also notable for being government-backed through the British Business Bank's ENABLE Guarantees programme, which underpins their capacity to lend to SMEs across the UK including those in coastal and maritime sectors.
Commercial Vessel Registration & MCA Requirements
All commercial vessels financed through Funding Circle must comply with UK maritime regulatory requirements. Key points for borrowers:
- MCA Coding: Commercially operated vessels carrying passengers or crew must hold the appropriate MCA Coding Certificate for their area of operation (Codes 1–6). Lenders will verify this before drawdown.
- Part I Registration: Most lenders prefer Part I registration on the UK Ship Register, which provides clear legal title and supports the lender's security interest. SSR is acceptable for some vessel types.
- SSR Registration: The Small Ships Register is acceptable for fishing vessels and some workboats. Part I is preferred for vessels over 24m.
- Marine Survey: An independent survey from an MCA-recognised surveyor is required for all commercial vessel finance applications. Survey costs are typically borne by the borrower.
UK Seafood Fund & Fishing Vessel Grants
If you are financing a fishing vessel, the UK Seafood Fund (administered by Defra and the devolved authorities) provides grant funding for vessel upgrades, energy efficiency improvements and safety equipment. Grant funding can often be combined with commercial vessel finance - the grant covers capital expenditure while finance covers the vessel purchase. Speak to Doulton Bridging Finance about structuring a combined finance and grant arrangement.
Strengths of Funding Circle for Commercial Vessel Finance
- Fast digital decisions - sometimes within 24 hours of application
- Government-backed through British Business Bank ENABLE Guarantees
- Minimum £10,000 - accessible for entry-level commercial vessel finance
- Straightforward digital application process - minimal paperwork burden
- Suitable for established UK SMEs with clean credit profiles
Limitations to Consider
- 5-year maximum term - highest monthly payments of any lender in this comparison
- Algorithm-based pricing: strong applicants may get better rates from bank lenders
- Rates up to 14.5% APR for riskier profiles
- 70% LTV - requires a 30% deposit or equity contribution
- Less experienced than specialist marine lenders with complex vessel types
Compare Funding Circle Against the Whole Market
| Lender | APR From | Max Term | Max LTV | Min Loan |
|---|---|---|---|---|
| Close Brothers | 5.9% | 10 yrs | 80% | £25,000 |
| Lombard | 5.5% | 10 yrs | 75% | £50,000 |
| Shawbrook | 6.5% | 7 yrs | 70% | £50,000 |
| United Trust Bank | 6.2% | 10 yrs | 75% | £50,000 |
| Aldermore | 6.8% | 7 yrs | 70% | £50,000 |
| Together | 7.5% | 7 yrs | 70% | £50,000 |
| Rankin | 8.2% | 15 yrs | 80% | £10,000 |
| Funding Circle | 7.9% | 5 yrs | 70% | £10,000 |
Highlighted row = Funding Circle. Source: Doulton Bridging Finance lender panel, October 2026.