Which UK peer-to-peer lending platforms closed or failed?
Several UK peer-to-peer (P2P) lending platforms, which matched individual investors with borrowers, failed, closed to new business or were sold between 2018 and 2022. Lendy went into administration on 24 May 2019 (FCA) and FundingSecure on 23 October 2019 (FCA). Funding Circle closed its platform to individual investors for good in March 2022, but still lends to businesses.
Platforms that failed, closed or were sold
| Platform | What it lent on | What happened | Source |
|---|---|---|---|
| Collateral | Property and assets | Platform stopped working on 26 February 2018. Placed into administration by its directors on 28 February 2018. The FCA said none of the Collateral companies held valid authorisation. | FCA |
| Lendy | Property purchase and development | Administration, 24 May 2019. Administrators from RSM Restructuring Advisory. | FCA |
| FundingSecure | Property and pawnbroking-style loans | Administration, 23 October 2019. Administrators from CG Recovery. | FCA |
| RateSetter | Mainly unsecured personal loans | Metro Bank agreed to buy it on 2 August 2020. RateSetter kept managing the existing P2P loans for its investors. | Metro Bank |
| Funding Circle (retail investors) | Business loans | New lending from individual investors paused in April 2020. Retail platform closed permanently in March 2022. Existing investors kept receiving repayments. | Alternative Credit Investor, 10 March 2022 |
All sources checked on 11 October 2026. This is not a full list. We have left out platforms whose closure we could not check against a reliable source.
Where businesses borrow now
If you used to borrow through a P2P platform, there are two main routes. A business loan gives you a fixed sum that you repay in instalments. Invoice finance gives you money against your unpaid invoices, so the amount you can draw goes up and down with your sales.
Business loans
| Lender | Product | Published rate | Source |
|---|---|---|---|
| Funding Circle | Business term loans and FlexiPay (not invoice finance) | Rates starting at 6.9% per year (business loans) | fundingcircle.com |
| iwoca | Flexi-loan and revolving credit (not invoice finance) | Rates starting at 1.5% per 30 days on drawn balance | iwoca.co.uk |
Rates as published on each lender's own website. The rate you are offered depends on your business. See business loans for more.
Invoice finance
These lenders offer invoice finance and publish a minimum turnover or advance rate on their own websites:
| Lender | Published minimum turnover | Paid up front | Source |
|---|---|---|---|
| Lloyds Bank Commercial Finance | £100k | Up to 90% | lloydsbank.com |
| NatWest Invoice Finance | £300k (discounting) | Up to 90% | natwest.com |
| Close Brothers Invoice Finance | £750k (discounting) | Up to 90% | closeinvoice.co.uk |
| Bibby Financial Services | None published | Up to 85% | bibbyfinancialservices.com |
| Ultimate Finance | None published | Up to 95% | ultimatefinance.co.uk |
Figures as published on each lender's own website, checked 14 October 2026. None of these lenders publishes its fees.
Our guide to how invoice finance works explains the basics, and the calculator shows what it might cost.
Common questions
Does Funding Circle still lend to businesses?
Yes. Funding Circle closed its platform to individual (retail) investors, but its website still offers business loans. It is no longer peer-to-peer in the sense of ordinary people choosing loans to fund.
Is this list every UK P2P platform that closed?
No. We have listed only the platforms where we could check the date against the FCA, the firm itself or a named publication. Other platforms closed or wound down too.
Is invoice finance the same as P2P lending?
No. Invoice finance is money lent against your unpaid invoices by a lender, usually a bank or finance company. P2P lending used money from individual investors, pooled or matched to loans through a platform.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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