Funding Circle Upsizes FlexiPay Credit Facility to £320M
Event summary
- Funding Circle renewed its FlexiPay funding facility, increasing it from £240M to £320M with a two-year term.
- FlexiPay business unit had £206M in assets under management (7% of Funding Circle’s total AUM) as of December 31, 2025.
- FlexiPay transactions grew 66% to £815M in 2025, following the beta launch of its credit card in September 2024.
- New product features in 2025 included accounting integrations, multiple company cards, and mobile payment options.
The big picture
Funding Circle’s upsized credit facility underscores institutional confidence in its AI-driven risk assessment and FlexiPay’s rapid transaction growth. The move aligns with broader fintech trends toward embedded finance, where lenders integrate payment and credit solutions into SME workflows. With £320M in funding, Funding Circle aims to scale FlexiPay’s ecosystem, potentially reshaping its revenue mix beyond traditional lending.
What we're watching
- Product Scaling
- How Funding Circle will deploy the £320M facility to accelerate FlexiPay’s growth beyond its current 7% AUM share.
- Competitive Positioning
- Whether Funding Circle’s AI-powered credit models can maintain a threefold advantage over traditional bureau scores amid rising competition.
- Market Expansion
- The pace at which FlexiPay’s product features, like mobile payments and accounting integrations, drive adoption among UK SMEs.
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