Small Business Funding UK: Best Options 2026
Best for Most Small Businesses: Merchant Cash Advance (MCA) - Get £3,000-£100,000 in 24-48 hours with 90% approval rate. No credit checks, minimal paperwork, repayments flex with your revenue. Based on your monthly card sales, not credit score.
Rates checked: August 2026
Top 5 Small Business Funding Options UK
1. Merchant Cash Advance (MCA) - Best Overall
- Amount: £3,000 - £500,000
- Speed: 24-48 hours
- Approval: 90% (bad credit OK)
- Best for: Retail, hospitality, services
- Requirements: £3k+/month card sales, 3 months trading
2. Invoice Finance - For B2B
- Amount: £10,000 - £5M
- Speed: 24 hours
- Best for: Businesses invoicing other companies
3. Business Overdraft
- Amount: £1,000 - £50,000
- Speed: 1-2 weeks
- Best for: Cash flow smoothing
4. Start Up Loans (Government)
- Amount: £500 - £25,000
- Interest: 6% fixed
- Best for: Very new startups (under 12 months)
5. Bank Term Loan
- Amount: £25,000+
- Speed: 4-8 weeks
- Approval: 62% (good credit needed)
How to Choose
Need money fast? → MCA (24-48 hours)
Have invoices? → Invoice Finance (80-90% of value)
Perfect credit, not urgent? → Bank loan (cheapest)
Brand new startup? → Start Up Loans scheme
Small amounts? → Business overdraft or credit card
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