Straight answers to the questions UK directors and owners ask most often about business loans, merchant cash advance and revenue based financing.
A clear-headed comparison of fixed-term business loans and merchant cash advance for UK SMEs. Repayment shape, eligibility, total cost, and how to choose.
Read article →What a UK business loan underwriter actually reads on your file — and the practical steps that strengthen an application before submission.
Read article →Revenue based financing, in plain English: how repayments flex with cash receipts, who it suits and how to size a facility against trading.
Read article →When a VAT loan protects working capital, how repayment is structured, and where it sits against HMRC time-to-pay.
Read article →Most UK funders look for a registered limited company or LLP, at least six months of trading, a UK business bank account and a minimum monthly turnover (commonly £10,000+). A soft eligibility check confirms what you qualify for without affecting your credit file. The strongest applications submit recent bank statements via Open Banking, a short profile of the business and a clear use of funds.
A UK business loan is fixed-term capital repaid in equal monthly instalments at a fixed rate over a defined period — typically 3 to 24 months for short-to-mid-term facilities. The lender quotes interest, fees and total repayable up front; on acceptance, funds settle to your business account, often the same working day.
Difficult through high street banks, but realistic through specialist funders. Underwriting that reads current cash flow, supplier payment history and forward order book — rather than only a bureau score — frequently approves files banks have declined. Rates reflect risk and are fixed on the offer.
Where a director's personal guarantee is given, a default could affect personal credit. The loan itself usually does not appear on a personal credit file. The eligibility check is a soft footprint and does not affect personal or business credit.
Interest on a UK business loan used wholly and exclusively for business purposes is generally an allowable expense for corporation tax. The principal repayment is not deductible. Always confirm treatment with your accountant.
A merchant cash advance is an advance against future card sales. Repayment is taken as a small share of each daily card settlement, so service rises in strong trading weeks and eases in slower ones. It is well suited to retail, hospitality and consumer-facing operators with consistent terminal volume.
Revenue based financing is capital advanced against forward revenue, with repayment calibrated as a share of top-line receipts. Service flexes with trading rhythm. It suits ecommerce, subscription and DTC businesses where revenue can be verified through Open Banking and platform payouts.
Facility size depends on monthly turnover, trading history, sector and the security position. As an indicative guide, unsecured facilities are commonly sized between one and two months of revenue. Larger amounts are available against a stronger trading book or asset security.
Two minutes. Soft credit check. A real underwriter reviews your file.
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