7 Best YouLend Alternatives UK 2025
Better rates, lower minimums, or faster approval. Compare YouLend against top alternatives and save £5,000-£15,000 on your funding.
Quick Summary
Best YouLend Alternative Overall: iwoca - Lower factor rates (1.08x vs YouLend's 1.10x), lower minimum revenue (£3k vs £8k), and excellent for both retail and e-commerce. Saves typical business £3,000-£8,000 vs YouLend.
- Cheapest option: Funding Circle (6.9% APR vs YouLend's 25-35% effective rate)
- Fastest approval: 365 Finance (same-day possible)
- Best for hospitality: 365 Finance (industry specialists)
- Best for small businesses: iwoca (£3k minimum vs YouLend's £8k)
Why Consider YouLend Alternatives?
YouLend is a solid MCA provider, but they're not always the best choice:
- Factor rates: YouLend's 1.10-1.35x isn't the cheapest (iwoca starts at 1.08x)
- High minimum: £8,000/month excludes smaller businesses
- E-commerce focus: If you're hospitality, 365 Finance understands your industry better
- Cost: Traditional loans 60-70% cheaper if you can wait 5-7 days
By comparing 3-4 alternatives, the average business saves £5,000-£15,000 on the same funding amount.
Top 7 YouLend Alternatives Compared
1. iwoca - Best Overall Alternative
iwoca
- Lower rates: 1.08-1.25x vs YouLend's 1.10-1.35x
- Lower minimum: £3k/month vs YouLend's £8k
- No PG under £50k: Better protection than YouLend
- Open banking: Faster data connection than manual upload
- • Amount: £1,000 - £500,000
- • Factor Rate: 1.08 - 1.25x
- • Min Revenue: £3,000/month
- • Min Trading: 6 months
- • Speed: 24 hours
2. 365 Finance - Best for Hospitality
365 Finance
When to choose 365 over YouLend: If you run a restaurant, pub, hotel, or cafe. 365 Finance specializes in hospitality, understands seasonal patterns, and offers same-day approval (faster than YouLend's 24-48 hours).
- ✓ Faster approval (same day)
- ✓ Hospitality expertise
- ✓ Dedicated managers
- ✗ Higher minimum (£10k vs £8k)
- ✗ PG required over £50k
- ✗ Weaker e-commerce integration
3. Funding Circle - Cheapest Long-Term Option
Funding Circle
Why choose over YouLend: If you can wait 5-7 days and have decent credit, Funding Circle offers traditional term loans from 6.9% APR - about 60-70% cheaper than YouLend's effective 25-35% cost.
- • YouLend: £50k at 1.25x = £62,500 total (£12,500 cost)
- • Funding Circle: £50k at 8.9% APR over 2yrs = £54,580 total (£4,580 cost)
- • Savings: £7,920 (63% cheaper)
Trade-off: Slower (5-7 days vs 24-48hrs), requires personal guarantee, fixed payments (less flexible).
4. Capify - For Larger Amounts
Amount Range: £10,000 - £500,000
Factor Rate: 1.20 - 1.45x
Best For: Businesses needing £100k+ where YouLend maxes out
Capify specializes in larger advances. If you need £150k-£500k, they're more likely to approve than YouLend. However, factor rates are higher (1.20-1.45x vs YouLend's 1.10-1.35x) and personal guarantee usually required.
5. Kriya (Previously eCapital) - Invoice Finance
Amount Range: £5,000 - £5,000,000
Discount Rate: 2-5% per month
Best For: B2B businesses with 30-90 day invoices
If you have business customers (not consumers), invoice finance from Kriya is 40-60% cheaper than YouLend. You get 80-90% of invoice value immediately, remaining when customer pays. Much lower cost than MCA if you have invoices.
6. Fleximize - Flexible Business Loans
Amount Range: £10,000 - £500,000
APR: 9-25%
Best For: Businesses wanting fixed-rate loans without revenue-based repayment
Fleximize offers "unsecured" term loans with fixed monthly payments. Cheaper than YouLend (12-18% effective vs YouLend's 25-35%), but requires personal guarantee and takes 3-5 days.
7. Lendified - For Smaller Amounts
Amount Range: £1,000 - £100,000
Factor Rate: 1.12 - 1.30x
Best For: Smaller businesses needing £5k-£25k
Lendified accepts businesses from £5,000/month revenue (vs YouLend's £8k) and specializes in smaller advances. Good for micro-businesses or first-time MCA users testing the waters.
YouLend vs Top 3 Alternatives: Full Breakdown
| Feature | YouLend | iwoca | 365 Finance | Funding Circle |
|---|---|---|---|---|
| Factor/Rate | 1.10-1.35x | 1.08-1.25x ✓ | 1.15-1.40x | 6.9%+ APR ✓ |
| Min Revenue | £8,000/mo | £3,000/mo ✓ | £10,000/mo | £10,000/mo |
| Approval Speed | 24-48hrs | 24hrs | Same day ✓ | 3-5 days |
| Personal Guarantee | Usually not | Not under £50k ✓ | Required £50k+ | Required |
| Best For | E-commerce | Small business ✓ | Hospitality | Lowest cost ✓ |
| Trustpilot | 4.3/5 | 4.7/5 ✓ | 4.5/5 | 4.2/5 |
Cost Comparison: £50,000 Funding
Same £50,000 advance, different total costs:
Cost: £7,500 (15%)
Cost: £12,500 (25%)
Cost: £14,000 (28%)
Cost: £4,580 (9%) - Saves £7,920 vs YouLend
Which Alternative Should YOU Choose?
Choose iwoca If:
- You want better rates (1.08-1.25x vs YouLend's 1.10-1.35x)
- Your revenue is £3k-£8k/month (YouLend won't accept you)
- You prefer no personal guarantee for amounts under £50k
- You value highest Trustpilot rating (4.7/5 vs YouLend's 4.3/5)
Choose 365 Finance If:
- You run restaurant, pub, hotel, or cafe (industry specialists)
- You need same-day approval (YouLend takes 24-48hrs)
- You have seasonal cash flow and want lender who understands hospitality patterns
Choose Funding Circle If:
- You want lowest total cost (60-70% cheaper than YouLend)
- You can wait 5-7 days for funding
- You prefer fixed monthly payments over daily deductions
- You have decent credit and can provide personal guarantee
How to Choose: Decision Framework
Start Here:
Under £3k → No MCA options
£3k-£8k → iwoca only
£8k-£10k → iwoca or YouLend
£10k+ → All options available
E-commerce → YouLend
Hospitality → 365 Finance
Retail/Other → iwoca or YouLend
Emergency (24hrs) → 365 Finance
Fast (48hrs) → YouLend or iwoca
Can wait (5-7 days) → Funding Circle (save 60%)
No → YouLend or iwoca (under £50k)
Yes → All options (may get better rates)
Final Recommendation
Don't stick with YouLend by default. While they're a solid choice for e-commerce, comparing against iwoca (better rates), 365 Finance (hospitality specialists), and Funding Circle (cheapest) takes 10 minutes and saves £5,000-£15,000 on average.
Best approach: Apply through a comparison service that submits to all providers simultaneously. You get 3-4 competing offers within 24 hours and choose the best one. No extra work for you, but potentially massive savings.
Compare YouLend vs All Alternatives
One application, multiple offers. See YouLend, iwoca, 365 Finance, and Funding Circle rates side-by-side.
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