Business Funding UK: Every Finance Option Compared
Types of Business Funding in the UK
UK businesses have more funding options than ever. The right choice depends on how much you need, how quickly, and how you want to repay. Here are the main types:
Merchant Cash Advance
A merchant cash advance provides a lump sum based on your monthly card turnover. Repayments are taken automatically as a fixed percentage of daily card sales — typically 10%–20%. This means you pay more when business is good and less during quiet periods.
- Amounts: £5,000 – £500,000
- Factor rate: 1.2 – 1.4 (total cost = advance × factor rate)
- Speed: Funded within 48 hours
- Best for: Retail, hospitality, and any business with consistent card turnover
Unsecured Business Loans
Fixed-amount unsecured business loans with regular monthly repayments. No security or assets required for smaller amounts. Interest rates vary from 5%–25% depending on credit profile and trading history. Need money urgently? See our guide to fast business loans that fund in 24–48 hours.
Invoice Finance
Invoice finance unlocks cash tied up in unpaid invoices. A lender advances 80%–90% of the invoice value upfront, then collects payment from your customer. Ideal for B2B businesses with long payment terms.
Asset Finance
Asset finance lets you spread the cost of equipment, vehicles, or machinery over 1–5 years. Options include hire purchase, finance lease, and operating lease.
Eligibility Requirements
Eligibility varies by product and lender, but general requirements include:
- At least 6 months trading history (12 months for most loans)
- Minimum monthly revenue of £5,000 (for MCAs) or £10,000 (for loans)
- UK-registered business with an active bank account
- No active CCJs over £500 (varies by lender)
How Funding Integrates with Your Merchant Data
Many modern lenders connect directly to your card processing data to assess eligibility and set repayment terms. This means faster decisions (often same-day) and repayment structures tied to your actual revenue rather than fixed monthly amounts.
Providers like YouLend and 365 Finance specialise in merchant data-driven lending for UK SMEs.
Check your funding options — our panel of FCA-regulated lenders can provide indicative quotes within 24 hours.
Frequently Asked Questions
What business funding options are available in the UK?
UK businesses can access merchant cash advances, unsecured business loans, invoice finance, asset finance, and revenue-based financing. Eligibility and rates depend on turnover, trading history, and sector.
What is a merchant cash advance?
A merchant cash advance (MCA) provides a lump sum repaid as a percentage of your daily card sales. There's no fixed repayment schedule — you pay more when sales are high and less when they're low. Typical factor rates are 1.2–1.4.
Can I get business funding with bad credit?
Yes. Merchant cash advances and revenue-based finance focus on your card turnover rather than credit score. If you process at least £5,000/month in card payments, you may qualify even with adverse credit.
How quickly can I get business funding?
Merchant cash advances can be funded within 48 hours of approval. Unsecured business loans typically take 3–7 business days. Invoice finance facilities can be set up within 1–2 weeks.
How do I get business funding in the UK?
Start by deciding how much you need and how quickly. Then check your eligibility — most lenders want 6–12 months of trading history and £5,000+ monthly revenue. Compare providers on total cost (not just the headline rate), apply online with your bank statements and accounts, and you can receive a decision within hours with alternative lenders.
What is the easiest business funding to get approved for?
Merchant cash advances and revenue-based finance are generally the easiest to qualify for because approval is based on your card turnover rather than credit score. Unsecured business loans require a stronger credit profile, while secured loans and commercial mortgages have the strictest criteria but the lowest rates.
Related Reading
AI Funding Matcher
Describe your needs and get matched to the right provider instantly.
Read: AI Funding MatcherMerchant Cash Advance
How MCAs work, costs, and top UK providers.
Read: Merchant Cash AdvanceUnsecured Business Loans
Compare unsecured business loan rates and lenders.
Read: Unsecured Business LoansFast Business Loans
Get funding in 24–48 hours — the quickest options.
Read: Fast Business LoansInvoice Finance
Unlock cash tied up in unpaid invoices.
Read: Invoice Finance