365 Business Finance Review UK 2025

What is 365 Business Finance?

365 Business Finance is a UK-based merchant cash advance provider founded in 2013, specializing in fast funding for hospitality and retail businesses. They're known for same-day decisions and deep understanding of seasonal business patterns.

Unlike traditional lenders, 365 Finance doesn't focus on credit scores. They analyze your card processing statements to understand your business performance, then advance you £3,000 to £250,000 based on your monthly card sales. Repayment is automatic - they take 10-20% of your daily card transactions.

365 Finance Rates and Costs

Real Cost Example: Restaurant Funding

365 Finance Pros and Cons

How 365 Finance Works

1. Submit card statements - Upload 3-6 months of processing statements or connect processor
2. Get decision (same day possible) - Account manager reviews and calls within 2-4 hours
3. Receive offer - See funding amount, factor rate, daily deduction percentage
4. Accept and sign - E-signature on agreement (read terms carefully)
5. Funds arrive (1-2 days) - Money in your business account, typically next working day
6. Automatic repayment - They deduct agreed percentage from daily card sales via your processor

Who Should Use 365 Finance?

✅ 365 Finance is Excellent For:

• Restaurants and cafes needing refurbishment, equipment, or working capital
• Pubs and bars with seasonal cash flow challenges
• Hotels and B&Bs requiring quick funding for maintenance or expansion
• Established hospitality (9+ months trading) with £10k+ monthly card sales
• Businesses needing speed - same-day approval beats all competitors

❌ Consider Alternatives If:

• You're e-commerce - YouLend offers better platform integration and slightly lower rates
• Revenue under £10k/month - iwoca accepts from £3k/month
• You want to avoid personal guarantee - YouLend or iwoca (under £50k) don't require it
• You want cheapest option - Traditional loans 60% cheaper (but slower)

365 Finance vs Competitors

Real Customer Reviews

Based on 890+ verified Trustpilot reviews:

365 Finance Eligibility

To qualify for 365 Business Finance funding:

• 9 months minimum trading: Must prove established business
• £10,000+ monthly revenue: Lower revenue businesses automatically declined
• Minimum £5,000 monthly card sales: Must process sufficient card volume
• UK registered business: Limited company preferred (sole traders case-by-case)
• No active insolvency: Bankruptcy = automatic decline
• Acceptable credit: CCJs okay if explained, but severe defaults may block approval

Best Alternatives to 365 Finance

1. YouLend (Better for E-commerce)

If you're an online seller rather than hospitality, YouLend's £8k minimum (vs 365's £10k) and e-commerce platform integrations make them better suited. Factor rates start from 1.10x (vs 365's 1.15x minimum).

2. iwoca (Better Rates, Lower Minimum)

iwoca accepts businesses from £3,000/month revenue and offers factor rates from 1.08x - significantly better than 365's 1.15x minimum. For smaller hospitality businesses (under £10k/month), iwoca is the only option. Even for larger businesses, iwoca's lower rates can save £3,000-£8,000 on a £50k advance.

3. Funding Circle (Cheapest Long-Term)

If you can wait 5-7 days and have decent credit, Funding Circle's traditional term loans start from 6.9% APR - roughly 60-70% cheaper than 365 Finance's effective rate. You'll pay £3,450 in interest on a £50k loan over 2 years vs £11,200+ with 365 Finance.

Is 365 Finance Worth It?

Yes, if you're in hospitality and need funding in 24 hours. Their industry specialization, same-day approval capability, and understanding of seasonal cash flow make them the best choice for restaurants, pubs, and hotels. The higher factor rates (vs iwoca) are offset by superior service and speed.

No, if you're e-commerce or retail - YouLend and iwoca offer better rates and lower minimums. Also no if you want the absolute cheapest option and can wait - traditional loans are 60-70% cheaper.

Our verdict: 365 Finance is excellent at what they do (fast hospitality funding), but always compare rates. We've seen customers save £5,000-£12,000 by getting quotes from 3-4 providers instead of accepting the first offer.

Frequently Asked Questions

Is 365 Finance FCA regulated?

Yes, 365 Business Finance is FCA authorized. They must follow strict lending guidelines and consumer protection rules. Always verify current FCA status on the official register before applying.

Can I get 365 Finance with bad credit?

Yes, many customers with imperfect credit are approved. 365 Finance focuses on your business performance (card sales) rather than personal credit score. CCJs, defaults, and past issues are considered case-by-case. However, active bankruptcy or serious fraud will result in decline.

How long does 365 Finance approval take?

Same-day approval is possible for straightforward applications. Average is 4-8 hours from submission to decision. Compare this to traditional bank loans which take 2-4 weeks, or even YouLend which takes 24-48 hours.

What happens if I can't make repayments?

Because repayment is tied to card sales, if sales drop to zero, repayment automatically pauses. There's no fixed monthly payment to miss. However, if your business closes before full repayment and you signed a personal guarantee, you're personally liable for the outstanding balance.

Can I get a second advance while repaying the first?

Yes, once you've repaid 50-75% of your first advance, 365 Finance may offer a second ("top-up"). Repeat customers often get better rates. However, be cautious - multiple advances can strain cash flow if total daily deductions exceed 25-30% of sales.