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The Funding Fred lender guide

Federal Capital business funding review

Federal Capital offers unsecured commercial loans to UK businesses through finance brokers. This guide explains the published repayment structure and application route, and identifies the costs, eligibility and guarantee terms to confirm before accepting an offer.

By Funding Fred · Sources checked 18 September 2026

Visit Federal Capital

Our enquiry compares selected Funding Fred partners. It is not an application directly to Federal Capital. Funding Fred is an introducer, not a lender.

Potential fit

Who could consider Federal Capital?

  • Established UK businesses that already work with, or are open to working through, a finance broker rather than applying directly to a lender.
  • Businesses seeking a fixed-term unsecured loan rather than a revenue-based or asset-secured facility.
  • Businesses that can commit to a monthly direct debit repayment schedule and want the option to settle early, subject to the lender's confirmed terms.

Worth weighing up

When to consider other options

  • Businesses that specifically need funding secured against property or other assets, since this product is unsecured commercial lending, not secured finance, see eligibility and terms guide for how secured lending is structured differently.
  • Businesses that prefer to deal directly with a lender rather than through an introducing broker.
  • Businesses whose accounts are already in arrears, since the settlement discount on remaining interest is described as available only to accounts not in arrears.

Understand the offer

Costs and repayments

Federal Capital offers unsecured commercial loans, with the cost confirmed in the individual agreement. Federal Capital Limited is named as the lender on the credit agreement, and the introducing broker is the first point of contact for questions before signing. Rate details are not published on the pages reviewed, so applicants should request the total cost of borrowing in writing, via the official services page, before agreeing to any offer.

Repayments are collected by direct debit rather than through a share of card takings or invoice value. According to the lender's published terms, the first payment falls one month after funds are released, giving businesses a short window before the schedule begins. This is closer to a conventional instalment loan than a merchant cash advance, so businesses should use the repayment schedule in their written agreement when planning cash flow.

Businesses that want to clear the loan ahead of schedule can request a settlement figure, and accounts not in arrears may receive a discount on the interest still outstanding. No early settlement fee is stated on the pages reviewed. As with any lending decision, confirm the exact settlement calculation and any conditions directly with Federal Capital or the introducing broker before relying on it.

Eligibility and application

Applications for this product are introduced by finance brokers rather than submitted directly on Federal Capital's own site. That means eligibility questions, documentation requests and initial checks are typically handled by the broker first, with Federal Capital Limited named as the lender once an agreement is issued. No published minimum turnover, trading history or credit score threshold was verified on the pages reviewed, so ask the broker or lender directly what evidence of trading performance is required.

Because this is an unsecured facility, it should not be assumed that no personal guarantee or other security is required, this detail was not confirmed on the pages reviewed. Anyone comparing offers should request full written terms, including any guarantee requirements, before signing. For a wider look at how unsecured lending criteria typically work across the market, see funding guides.

Advantages to weigh up

  • Repayments are collected by direct debit, with the first payment one month after payout, so businesses can plan around the agreed schedule.
  • No early settlement fee is stated, and a discount on remaining interest may be available to accounts not in arrears.
  • The lender works through finance brokers, which can mean broker support during the application, though it also means Federal Capital is not the first point of contact throughout.

Limitations to understand

  • No general published rate, minimum turnover figure or guarantee policy was verified on the pages reviewed, so full costs and conditions must be confirmed in writing.
  • Access is only through introducing brokers rather than a direct lender application, adding a step compared with applying straight to a lender.
  • Funding timing depends on signatures and final checks being completed, so timescales cannot be assumed or guaranteed in advance.

Look at the wider picture

Comparing the alternatives

Unsecured loans, secured loans, merchant cash advances and invoice finance are structured very differently, and comparing them properly means checking whether repayment is fixed or revenue-based, whether the lender is direct or accessed through a broker, and whether any security or personal guarantee is involved. A sales advance is repaid as a share of future card takings, not as a fixed instalment, a materially different commitment from the direct debit repayment process described for Federal Capital’s product.

Reviewing several like-for-like offers before signing is the safer approach for any business comparing unsecured lending options. For a broader comparison of how UK business loan providers structure their costs and terms, see compare funding structures. Funding Fred's own eligibility check at funding options is a separate route to a panel of finance partners and is not an application to Federal Capital.

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Flexi-Loan

Pricing: Interest on the outstanding balance, calculated daily.

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Fleximize

Flexiloan and Flexiloan Lite

Flexiloan: 12–60 months; 12 months trading required.

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Capify

Small business loans

Trading history: At least 12 months.

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Product features checked against each provider’s UK website. These are comparison pointers, not a price ranking or a promise of eligibility.

A little more clarity

Your Federal Capital questions, answered

Costs, eligibility and the details to check before applying.

No. Federal Capital is a named lender offering unsecured commercial loans through introducing brokers. Funding Fred is a separate platform that matches businesses with its own panel of finance partners, and an enquiry through Funding Fred is not a direct application to Federal Capital.

How we put this guide together

This is a review of published UK product information, not a customer experience or a hands-on test. We have not assigned a star rating. This guide focuses on Federal Capital — Unsecured commercial loans. Other products may have different terms.

Sources checked 18 September 2026. Your written offer determines your actual costs and conditions.

More funding guides

Find funding that fits your business.

Explore selected finance partners with Funding Fred. Free to use, with no obligation.

This is a Funding Fred enquiry, not a direct Federal Capital application. Finance is subject to status and provider criteria.

Funding Fred is a trading name of Lucky Growth Partners Ltd, company number NI725486. Lucky Growth Partners Ltd, FRN 1053350, is an Appointed Representative of Switcha Limited, FRN 828963, which is authorised and regulated by the Financial Conduct Authority as a credit broker, not a lender. Switcha Limited is Lucky Growth Partners Ltd’s principal for regulated credit broking activity.

Funding Fred acts as an introducer and intermediary. We do not lend money, make credit decisions, provide regulated financial advice, or guarantee approval. We may introduce you to authorised credit brokers, lenders and selected business service providers based on the information you provide. Finance is subject to status, affordability and lender/provider criteria. We do not charge customers directly for our service, but we may receive a commission or referral fee from a broker, lender or provider if you proceed. You are under no obligation to proceed with any introduction or offer.

You can check these details on the FCA Financial Services Register.

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Federal Capital business funding review: Costs & Eligibility