Business Funding Approval Rates UK 2025

Which lenders approve the most businesses? iwoca (85%), YouLend (80%), banks (35%). Full breakdown by lender type, business size, and industry.

Highest Approval Rates 2025

  1. 1. iwoca: 85% approval rate (highest)
  2. 2. YouLend: 80% approval rate
  3. 3. 365 Finance: 75% approval rate
  4. 4. Capify: 70% approval rate
  5. 5. Funding Circle: 45-50% approval rate
  6. 6. High Street Banks: 30-40% approval rate (lowest)

Why Such Different Approval Rates?

MCAs Approve 2-3x More Than Banks

iwoca (85%) vs Bank (35%) - why the difference?

  • MCAs focus on revenue: Current sales matter, not credit history
  • Banks focus on credit: Past behavior matters more than current performance
  • MCAs are flexible: Accept seasonal, newer, or challenged credit businesses
  • Banks are rigid: Strict criteria, one size fits all

Approval Rates by Business Size

Under £5k Monthly Revenue:
All MCAs:10% approval (too low)
Banks:5% approval
£5k-£10k Monthly Revenue:
iwoca:80% approval ✓
YouLend:40% (minimum is £8k)
Banks:15%
£10k-£20k Monthly Revenue:
iwoca:90% ✓
YouLend:85% ✓
365 Finance:80%
Banks:40%
£20k+ Monthly Revenue:
All MCAs:90%+ ✓
Funding Circle:65%
Banks:55%

How to Maximize Your Approval Chances

  1. Apply to right lender for your revenue: Under £10k? iwoca only. £10k+? All options
  2. Wait until 6+ months trading: Approval rate jumps from 30% to 75%
  3. Apply to 3-4 lenders: One declines you? Others might approve (different criteria)
  4. Show growing/stable sales: Declining revenue = automatic decline from most

Conclusion

Highest approval: iwoca at 85% (best choice for most SMEs)
Lowest approval: Banks at 35% (avoid unless excellent credit)

Use MCA providers (iwoca, YouLend, 365) for 2-3x better approval odds than traditional banks.

Apply to High-Approval Lenders

We match you to lenders with 75-90% approval rates for businesses like yours.

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