6 Best 365 Finance Alternatives UK 2026

Why Look Beyond 365 Finance?

365 Finance is excellent for hospitality businesses, but they're not always the best choice:

• High minimum: £10,000/month excludes smaller businesses (iwoca accepts £3k/month)
• Personal guarantee: Required for amounts over £50k (YouLend usually doesn't require)
• Factor rates: 1.15 to 1.40x vs iwoca's 1.08 to 1.25x (£5k to £10k difference on £50k)
• E-commerce weak: If you're online retail, YouLend offers better integration

Top 6 Alternatives Ranked

1. iwoca: Best Rates & Lowest Minimum

Why better than 365: Factor rates from 1.08x (vs 365's 1.15x minimum), accepts businesses from £3,000/month (vs 365's £10k), and no personal guarantee under £50k. For most SMEs, iwoca offers better value.

Specifications:

• Amount: £1,000 to £500,000
• Factor Rate: 1.08 to 1.25x
• Min Revenue: £3,000/month
• Approval: 24 hours
• Trustpilot: 4.7/5 (3,250 reviews)

Cost Example: £50k at iwoca's 1.15x = £57,500 total. Same at 365's 1.28x = £64,000. Save £6,500.

2. YouLend: Better for E-commerce

Why choose over 365: If you're an e-commerce business, YouLend's Shopify/Amazon/eBay integrations pull your sales data automatically, so applying is quick. Slightly lower minimum revenue (£8k vs £10k) and usually no personal guarantee required.

Factor rates 1.10 to 1.35x are comparable to 365's 1.15 to 1.40x, but YouLend's specialisation in online sellers means better understanding of e-commerce cash flow patterns.

3. Funding Circle: 60% Cheaper (If You Can Wait)

Cost Comparison:

• 365 Finance: £50k at 1.28x = £64,000 (£14,000 cost)
• Funding Circle: £50k at 8.9% APR = £54,580 (£4,580 cost)
• Savings: £9,420 (67% cheaper)

Trade-off: Takes 5 to 7 days vs 365's same-day, requires personal guarantee, and fixed monthly payments (less flexible than 365's % of sales).

4. Capify: For Larger Amounts (£100k+)

If 365 Finance caps you at £100k but you need more, Capify approves up to £500k. However, expect higher factor rates (1.25 to 1.45x) and personal guarantee required. Use only if amount needed exceeds what 365 can offer.

5. Market Finance: Broker Network Access

Market Finance is a broker (like us) that gives you access to 20+ lenders including 365 Finance. One application, multiple offers. Good for businesses that don't fit 365's criteria or want to see more options.

6. Kriya: If You Have B2B Invoices

Completely different product: invoice finance instead of MCA. If you invoice other businesses (not consumers), Kriya advances 80 to 90% of invoice value at 2 to 5% monthly cost, about 50% cheaper than 365 Finance's MCA. Requires B2B customers with 30 to 90 day payment terms.

When to Stick with 365 Finance

Despite alternatives, 365 Finance is still the best choice if:

• You're in hospitality: Their industry specialisation is unmatched
• You need same-day approval: Fastest in the market
• You value dedicated service: Account managers are excellent
• Your revenue is £15k+ monthly: You'll get their best rates (1.15 to 1.20x)

How to Choose the Best Alternative

Step 1: Determine your business type and needs
Step 2: Check minimum requirements (revenue, trading time)
Step 3: Compare factor rates from 3 to 4 providers
Step 4: Choose best rate that meets your speed needs

Bottom Line

365 Finance is excellent for hospitality, but iwoca beats them on rates (1.08x vs 1.15x), YouLend beats them for e-commerce, and Funding Circle beats them on cost (60% cheaper).

Always compare. The 10 minutes spent getting quotes from 3 to 4 providers saves £5,000 to £10,000 on average.