365 Finance Fees and Costs Breakdown UK 2025
Complete breakdown of 365 Finance costs. Factor rates 1.15-1.40x explained with real examples on £20k, £50k, and £100k advances. No hidden fees revealed.
Quick Cost Summary
- Factor Rate: 1.15-1.40x (15-40% total cost)
- Application Fee: £0
- Setup Fee: £0
- Monthly Fee: £0
- Early Repayment: £0 penalty
- Hidden Fees: None
Total cost = Factor rate only. 1.25x means you repay £1.25 for every £1 borrowed. Simple and transparent.
Understanding Factor Rates
365 Finance uses "factor rate" instead of APR. Here's what it means:
- Factor rate 1.15: Repay £1.15 for every £1 advanced
- £20,000 at 1.15x: Repay £23,000 total (£3,000 cost)
- £50,000 at 1.25x: Repay £62,500 total (£12,500 cost)
- £100,000 at 1.30x: Repay £130,000 total (£30,000 cost)
Real Cost Examples (October 2025)
Example 1: £20,000 Advance
- • Amount received: £20,000
- • Factor rate: 1.18x (typical for good business)
- • Total to repay: £23,600
- • Total cost: £3,600 (18%)
- • Your daily card sales: £600
- • Daily deduction (15%): £90
- • Est. repayment period: 262 days (~9 months)
Example 2: £50,000 Advance
- • Amount received: £50,000
- • Factor rate: 1.28x
- • Total to repay: £64,000
- • Total cost: £14,000 (28%)
- • Your daily card sales: £1,500
- • Daily deduction (18%): £270
- • Est. repayment period: 237 days (~8 months)
Example 3: £100,000 Advance
- • Amount received: £100,000
- • Factor rate: 1.32x
- • Total to repay: £132,000
- • Total cost: £32,000 (32%)
- • Your daily card sales: £4,000
- • Daily deduction (20%): £800
- • Est. repayment period: 165 days (~5.5 months)
What Determines Your Factor Rate?
365 Finance assigns factor rates based on risk:
1.15-1.20x (Best Rates) - Low Risk
- 18+ months trading with consistent growth
- £20k+ monthly card sales
- Established hospitality business
- No CCJs or defaults
1.20-1.30x (Standard Rates) - Medium Risk
- 9-18 months trading
- £10k-£20k monthly card sales
- Some seasonality but stable
- Minor credit issues acceptable
1.30-1.40x (Higher Rates) - Higher Risk
- 9-12 months trading (newer business)
- £10k-£15k monthly sales
- Seasonal with significant fluctuation
- CCJs or past defaults present
365 Finance vs Competitors: Cost Comparison
| Provider | Factor Rate | £50k Cost | Difference |
|---|---|---|---|
| iwoca | 1.08-1.25x | £7,500 | Saves £6,500 |
| YouLend | 1.10-1.35x | £12,500 | Saves £1,500 |
| 365 Finance | 1.15-1.40x | £14,000 | Baseline |
| Capify | 1.20-1.45x | £17,500 | Costs £3,500 more |
365 Finance sits in the middle: More expensive than iwoca/YouLend, cheaper than Capify. You pay for their hospitality expertise and same-day approval speed.
Hidden Costs to Watch For
365 Finance has NO hidden fees, but watch out for:
- Personal guarantee costs: If required (£50k+), failure means personal liability
- Opportunity cost: That £14k cost on £50k could have been £7.5k with iwoca
- Cash flow impact: 15-20% daily deduction reduces available working capital
Is 365 Finance Worth the Cost?
Yes if: You're hospitality, need same-day approval, and value industry expertise. The extra £2k-4k vs iwoca is worth it for specialized service.
No if: You can wait 24 hours for iwoca (saves £3k-7k) or you're e-commerce (YouLend better suited).
Always compare first. Get quotes from 365 Finance AND 2-3 alternatives. Choose best value for your specific situation.
Compare 365 Finance Costs vs Alternatives
See exact costs from 365 Finance, iwoca, YouLend side-by-side
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