Funding Circle is brilliant for passive income as the typical RoI can be up to 8% which is equal to some Hedge Funds. The way they handle defaults is a lot better than many banks. When a lender defaults, Funding Circle will ease back on the payments allowing the borrower to recover. Often the company is able to return most of the money lent.

Funding Circle has been in business since 2010 and is a lending marketplace that allows investors to lend cash directly to small and medium-sized businesses. Funding Circle was founded in 2010 by Samir Desai, James Meekings and Andrew Mullinger.

Funding Circle was the first business to allow peer-to-peer lending for companies in the UK and now operates in the UK, US, Germany and the Netherlands. Funding Circle has enabled over £5 billion in loans to small businesses as at June 2018.