Best Business Funding Providers UK 2025
Top 10 UK business funding providers ranked by rates, speed, approval rates, and customer reviews. Updated October 2025 with real costs and comparisons.
Top 3 Winners 2025
- #1: iwoca - Best rates (1.08x), lowest minimum (£3k), 4.7/5 rating
- #2: YouLend - Best for e-commerce, Shopify/Amazon integration, 4.3/5
- #3: 365 Finance - Best for hospitality, same-day approval, 4.5/5
Top 10 Business Funding Providers Ranked
1. iwoca - Best Overall (4.7/5)
- • Amount: £1k-£500k
- • Factor Rate: 1.08-1.25x (lowest)
- • Min Revenue: £3k/month (lowest)
- • Approval: 24 hours
- • Small businesses (£3k+ revenue)
- • Retail and e-commerce
- • No personal guarantee needed
- • Want best rates available
2. YouLend - Best for E-commerce (4.3/5)
Amount: £5k-£500k | Factor: 1.10-1.35x | Min Revenue: £8k/month
Why #2: Seamless integration with Shopify, Amazon, eBay. Approval in 24-48 hours. Perfect for online sellers needing inventory funding. Slightly higher rates than iwoca but better e-commerce tools.
3. 365 Finance - Best for Hospitality (4.5/5)
Amount: £3k-£250k | Factor: 1.15-1.40x | Min Revenue: £10k/month
Why #3: Industry specialists for restaurants, pubs, hotels. Same-day approval possible (fastest). Understand seasonal hospitality cash flow. Higher minimums and PG required over £50k keeps them at #3.
4. Funding Circle - Cheapest Option (4.2/5)
Amount: £10k-£500k | APR: 6.9-18% | Min Revenue: £10k/month
Why #4: Traditional term loans at 60-70% lower cost than MCAs. £50k costs £4,580 vs iwoca's £7,500 or 365's £14,000. Trade-off: Slower (5-7 days), personal guarantee required, fixed payments.
5. Capify - For Larger Amounts (4.1/5)
Amount: £10k-£500k | Factor: 1.20-1.45x
Specializes in £100k+ advances. Higher factor rates than iwoca/YouLend but approves larger amounts. Personal guarantee usually required. Choose if you need £150k+ and others decline.
6. Fleximize - Unsecured Business Loans (4.0/5)
Amount: £10k-£500k | APR: 9-25%
Fixed-rate term loans without tying repayment to sales. Cheaper than MCAs (15-20% vs 25-35%) but requires personal guarantee and credit checks. Good middle-ground between MCAs and traditional banks.
7-10. Other Notable Providers
- 7. Kriya (Invoice Finance): For B2B businesses - 2-5% monthly cost, much cheaper than MCAs
- 8. Lendified: Smaller amounts (£1k-£100k), factor rates 1.12-1.30x
- 9. Liberis: Point-of-sale integration, 1.15-1.35x factor rates
- 10. Nucleus Commercial Finance: Asset-backed lending, lower rates but requires collateral
Comparison Table: Top 5 Providers
| Rank | Provider | Factor/APR | Min Revenue | Best For | Rating |
|---|---|---|---|---|---|
| 1 | iwoca | 1.08-1.25x ✓ | £3k ✓ | Best value | ⭐ 4.7 |
| 2 | YouLend | 1.10-1.35x | £8k | E-commerce | ⭐ 4.3 |
| 3 | 365 Finance | 1.15-1.40x | £10k | Hospitality | ⭐ 4.5 |
| 4 | Funding Circle | 6.9%+ APR ✓ | £10k | Cheapest | ⭐ 4.2 |
| 5 | Capify | 1.20-1.45x | £15k | Large amounts | ⭐ 4.1 |
How We Ranked These Providers
Our ranking considers 6 factors:
- Factor rates (40%): Lower = better
- Approval rate (20%): Higher = more businesses get funded
- Speed (15%): Faster decisions and funding
- Customer reviews (15%): Trustpilot ratings and volume
- Minimum requirements (5%): Lower minimums = more accessible
- Transparency (5%): Clear pricing, no hidden fees
Frequently Asked Questions
Which provider has the best rates?
iwoca has the lowest factor rates starting at 1.08x. For a £50k advance, iwoca's 1.15x costs £7,500 total vs YouLend's 1.25x costing £12,500 - a £5,000 saving.
Which is fastest?
365 Finance offers same-day approval (2-4 hours possible). YouLend and iwoca typically take 24 hours. Funding Circle takes 5-7 days but offers cheaper rates.
Which doesn't require personal guarantee?
YouLend (usually not required) and iwoca (not required under £50k) are best for avoiding personal guarantees. 365 Finance and Capify typically require PG for larger amounts.
Can I apply to multiple providers?
Yes - and you should. Applying to 3-4 providers shows you all available rates. We recommend using a comparison service that submits to multiple providers simultaneously, so you get competing offers without multiple applications.
Bottom Line
Best provider depends on your business:
- E-commerce → YouLend
- Hospitality → 365 Finance
- Small business/best rates → iwoca
- Want cheapest → Funding Circle
- Need large amount → Capify
Always compare 3-4 providers. Factor rate differences of 0.10-0.20x translate to £5,000-£10,000 savings on typical £50k advances.
Compare All Top 10 Providers
Get quotes from iwoca, YouLend, 365 Finance, and 7+ others. See all rates side-by-side in 24 hours.
Compare All Providers