How to Get Approved for Business Funding UK

12 Ways to Improve Approval Chances

1. Apply to Right Provider for Your Revenue

• Under £3k/month: No MCA options (all decline) - try Startr
• £3k-£8k/month: iwoca only (others auto-decline)
• £8k-£10k/month: iwoca or YouLend
• £10k+/month: All providers accept

Common mistake: Applying to YouLend with £5k/month revenue = automatic decline. Apply to iwoca instead (£3k minimum) and you're approved.

2. Wait Until 6 Months Trading

Under 6 months: 90% decline rate
6-12 months: 70% approval rate
12+ months: 85%+ approval rate

If you're at 4-5 months, waiting 1-2 months dramatically improves chances. Use credit card or overdraft short-term rather than getting declined and damaging future applications.

3. Show Consistent Sales (Not One-Off Spike)

Good pattern: £10k, £11k, £9.5k, £10.5k, £11k (consistent)
Bad pattern: £3k, £2k, £25k, £4k, £3k (one spike, otherwise low)

Lenders want consistent, predictable revenue. One great month doesn't offset five poor ones.

4. Have Bank Statements Ready (3-6 Months)

Before applying, download:

• Last 3 months business bank statements (PDF)
• Last 3 months card processing statements
• Company House information (if ltd company)
• Director ID (passport or driving license)

Pro tip: Use open banking instead of uploading (faster, more secure, higher approval rate).

5. Apply Before 10am on Monday-Thursday

Best time: Monday 9-10am (processed first, decisions same day)
Worst time: Friday after 2pm (delayed until Monday)

Lenders process applications in order received. Early applications get faster decisions and better rates (underwriters fresh, not rushed).

6. Be Honest About Credit Issues

If you have CCJs, defaults, or past issues - declare them upfront. Lenders find out anyway (credit checks), and honesty improves approval chances.

Good approach: "I have 2 CCJs from 2022 totaling £8k, both now paid. Business has been stable since then with £12k monthly revenue."

Bad approach: Hide it, hope they don't check. They always check. Dishonesty = automatic decline + blacklist.

7. Choose Realistic Amount

Rule of thumb: Maximum funding = 2-3x monthly card sales

• £10k/month sales → Max £20-30k funding
• £20k/month sales → Max £40-60k funding
• £50k/month sales → Max £100-150k funding

Asking for £100k with £15k monthly sales = automatic decline. Ask for £30-40k = high approval chance.

8. Fix Your Business Bank Account First

Red flags lenders see:

• Regular overdraft limit breaches
• Returned direct debits/bounced payments
• Gambling transactions from business account
• Frequent cash withdrawals (suggests unreported sales)

Spend 1-2 months cleaning up account (stop bouncing, reduce overdraft usage) before applying.

9-12. More Tips

• 9. Apply to 3-4 providers simultaneously: Get competing offers, choose best
• 10. Don't apply if sales declining: Wait until sales stabilize or grow
• 11. Have clear use of funds: "Equipment purchase" better than vague "working capital"
• 12. Respond to lender questions within 30 mins: Fast responses = faster approval

Approval Rates by Provider

Takeaway: MCAs (YouLend, iwoca, 365) approve 2-3x more businesses than banks.

Common Decline Reasons

1. Revenue too low: 40% of declines
2. Trading time under 6 months: 25% of declines
3. Declining sales trend: 15% of declines
4. Active insolvency: 10% of declines
5. Insufficient card sales: 10% of declines

Final Tips

Best way to improve approval odds: Apply to right provider. More businesses get declined because they applied to wrong lender (revenue too low, wrong industry) than because of business issues.

Use comparison service that matches you to appropriate providers based on your revenue, industry, and trading history. Your approval chance goes from 60% (applying blind) to 85%+ (applying to matched lenders).