Large Business Funding Over £100k UK
Above £100,000 the cost gap between products becomes serious money: the difference between a term loan and an expensive advance on £150,000 can exceed £35,000. Here is how to choose.
Quick Answer
For £100k-£500k, price a term loan first - Funding Circle at roughly 7-12% APR is typically less than half the cost of an advance, if you can wait 5-7 days and pass a credit underwrite. If you need the money this week or the bank route is closed, a merchant cash advance from iwoca (1.15-1.25x at this size) or YouLend (1.10-1.35x, up to £500k) is the realistic alternative. Expect a personal guarantee whichever way you go.
Advances are sized on takings - typically 1-2x monthly sales - so £100k+ generally requires £50k-£100k+ a month through the till or the website.
Why £100k+ is a different decision
At £10,000, choosing the wrong product costs you the price of a decent laptop. At £150,000, the same mistake costs a salary. Percentage differences that feel small on small sums - a factor rate of 1.35x instead of 1.20x, say - translate into tens of thousands of pounds at this level, so the order in which you approach lenders matters more than anywhere else in the market.
The second difference is scrutiny. Large advances and loans get real underwriting: expect requests for management accounts, VAT returns and director information, and expect a personal guarantee to be a condition of almost any offer over £100k.
The main providers for £100k-£500k
| Provider | Product | Range | Cost at this size | Speed | Personal guarantee |
|---|---|---|---|---|---|
| Funding Circle | Term loan | £100k-£500k | ~7-12% APR | 5-7 days | Required |
| iwoca | Merchant cash advance | £100k-£500k | Factor rate 1.15-1.25x | 24-48 hours | Required at this size |
| YouLend | Merchant cash advance | Up to £500k | Factor rate 1.10-1.35x | 24-48 hours | Confirm terms on your offer |
| Capify | Merchant cash advance | £100k-£500k | Factor rate 1.20-1.45x | 24-48 hours | Required |
Figures are the verified ranges we hold for each provider; individual quotes depend on revenue, trading history and sector.
The worked example: raising £150,000
Here is what the same £150,000 costs by route, arithmetic shown:
- Funding Circle term loan at 9% APR over two years: monthly repayments come to roughly £6,850; £6,850 × 24 ≈ £164,400 total, so about £14,400 in interest (~10% of the sum borrowed).
- iwoca advance at 1.20x: £150,000 × 1.20 = £180,000 to repay - a fixed £30,000 cost (20%).
- Capify advance at 1.35x: £150,000 × 1.35 = £202,500 - a £52,500 cost (35%), more than three and a half times the term-loan interest.
Two lessons. First, the week you save with an advance costs £15,000-£38,000 on this example - only worth paying if the opportunity you are funding earns more than that in the same window. Second, within the advance market itself the spread between providers (1.15x versus 1.45x on £150,000 is £22,500 versus £67,500) dwarfs almost any other negotiation you will have this year. Model your own figures in the funding calculator and see the factor rates guide for the mechanics.
Personal guarantees: the fine print that matters most
Over £100k, assume the guarantee is non-negotiable. Signing one means the lender can pursue your personal assets - home included, depending on the wording - if the business cannot repay. Three practical points:
- Read the cap. Some guarantees are capped at a fixed sum, others are unlimited. Push for a cap.
- Understand joint liability. Multiple directors signing does not split the exposure - each guarantor is typically liable for the full amount.
- Take advice. At this ticket size, an hour of independent legal advice on the guarantee is trivially cheap insurance.
Qualifying for £100k+
- For an advance: takings that support the sum - typically 1-2x monthly card or online sales, so £50k-£100k+ a month for a £100k-£150k advance - plus solid trading history. Approval remains sales-led: how merchant cash advances work does not change at scale, but underwriting gets more thorough.
- For a term loan: filed accounts, healthy debt service cover, and a credit file that survives inspection. Established businesses (typically 2+ years) get the best pricing.
- For either:a clear use of funds. “Expansion” is not a plan; “fit-out of a second site opening in November, payback modelled over 18 months” is.
A final honesty check: an advance at this size means handing over a share of every day's takings for a year or more. If margins are thin or revenue is softening, that holdback can do real damage - the situations described in when NOT to take a merchant cash advance apply with more force at £150,000 than at £15,000.
The verdict
Price Funding Circle first: on £150,000 the term loan saves £15,000-£38,000 against typical advance pricing. Go the advance route when speed genuinely pays for itself or the loan underwrite fails - and there, get quotes from at least iwoca and YouLend before considering higher-rate providers. Compare the whole market side by side on our business funding page.
Frequently asked questions
What is the cheapest way to borrow over £100k?
A term loan. Funding Circle lends £100k-£500k at roughly 7-12% APR, which on £150,000 over two years works out at around £14,400 in interest - less than half the cost of a typical merchant cash advance for the same sum. The trade-off is a 5-7 day process and a full credit underwrite.
Can I get £100k+ through a merchant cash advance?
Yes, if your card or online takings support it. Advances are typically sized at 1-2x average monthly sales, so £100k+ generally requires £50k-£100k+ in monthly takings. iwoca, YouLend and Capify all advance into the £100k-£500k range.
Is a personal guarantee required for funding over £100k?
Almost always, whichever product you choose. At this level lenders want the directors personally on the hook, which means your personal assets are at risk if the business cannot repay. Read the guarantee wording carefully and take advice before signing.
How fast can I get £150,000?
A merchant cash advance can deliver a decision in 24-48 hours with funds a day or two later, though larger sums attract more underwriting questions than small ones. A term loan through a lender like Funding Circle typically takes 5-7 days end to end.
What if one provider declines my application?
Criteria differ more at large ticket sizes than small ones. If the value-leaders decline, providers such as Capify serve the same range at higher factor rates (1.20-1.45x). Price that honestly: on £150,000, a 1.35x rate means £52,500 in cost - sometimes waiting and fixing the decline reason is the better trade.
Raising £100k or more?
Tell us the amount and your monthly takings and we will show you which providers can realistically fund it - loans and advances side by side, with the total repayable in pounds on each.
Compare large funding options