Types of Business Finance
There are several ways to fund your business in the UK. The right option depends on what you need the money for, how quickly you need it, and how your business generates revenue.
Business Loans
Borrow a lump sum and repay in fixed monthly instalments over an agreed term. Rates from 6.9% per year. Best for established businesses needing £10,000–£750,000 for growth, expansion, or large purchases.
Learn moreMerchant Cash Advance
Receive a lump sum upfront and repay automatically as a percentage of your daily card sales. No fixed monthly repayments — you pay more when business is good, less when it's quiet.
Learn moreInvoice Finance
Unlock cash tied up in unpaid invoices. Receive up to 90% of your invoice value within 24 hours, then get the remainder (minus fees) when your customer pays.
Learn moreAsset Finance
Spread the cost of equipment, vehicles, or machinery over time. Options include hire purchase, finance leases, and operating leases — with or without a deposit.
Learn moreBusiness Credit Cards
Access a revolving credit line for everyday business expenses. Earn cashback or rewards, and enjoy up to 56 days interest-free on purchases.
Learn moreRevenue-Based Finance
Similar to merchant cash advances but based on total revenue (not just card sales). Providers like YouLend and 365 Finance offer flexible funding linked to your business performance.
Learn moreHow to Choose the Right Business Finance
What Do You Need the Money For?
If you're buying equipment or a vehicle, asset finance lets you spread the cost without a large upfront payment. For general working capital or growth, a business loan or merchant cash advance may be more suitable. If cash flow gaps caused by slow-paying customers are the issue, invoice finance is designed exactly for that.
How Quickly Do You Need It?
If speed is critical, merchant cash advances and Iwoca Flexi-Loans can fund within hours. Traditional business loans take 1–5 working days. Asset finance and larger loans may take longer due to underwriting.
How Do You Want to Repay?
If you want predictable monthly payments, choose a fixed-term business loan. If you prefer repayments that flex with your revenue, a merchant cash advance or revenue-based finance adjusts automatically. Business credit cards offer the most flexibility but typically at higher rates.
Frequently Asked Questions
What is the easiest type of business finance to get?
Merchant cash advances and revenue-based finance are typically the easiest to access. They require minimal paperwork, use soft credit checks, and decisions are based on your card sales history rather than credit scores. Many businesses are approved within 24 hours.
Can I get business finance with bad credit?
Yes. Several types of business finance are available to businesses with imperfect credit. Merchant cash advances, revenue-based finance, and some invoice finance providers focus on your business performance rather than your personal credit score.
How much business finance can I get?
It depends on the type. Merchant cash advances typically offer 1–1.5x your monthly card turnover. Business loans range from £1,000 to £750,000+. Invoice finance can unlock up to 90% of your outstanding invoices. Asset finance covers the full cost of equipment.
How quickly can I get business finance?
Speed varies by type. Merchant cash advances and Iwoca Flexi-Loans can fund within hours. Traditional business loans take 1–5 working days. Invoice finance can release funds within 24 hours of submitting an invoice.
Do I need a business plan to get finance?
Not always. Alternative lenders like Iwoca, YouLend, and merchant cash advance providers rarely require a formal business plan. Traditional bank loans and larger funding amounts may require one.