6 Best 365 Finance Alternatives UK 2025

Why Look Beyond 365 Finance?

365 Finance is excellent for hospitality businesses, but they're not always the best choice:

• High minimum: £10,000/month excludes smaller businesses (iwoca accepts £3k/month)
• Personal guarantee: Required for amounts over £50k (YouLend usually doesn't require)
• Factor rates: 1.15-1.40x vs iwoca's 1.08-1.25x (£5k-£10k difference on £50k)
• E-commerce weak: If you're online retail, YouLend offers better integration

Top 6 Alternatives Ranked

1. iwoca - Best Rates & Lowest Minimum

Why better than 365: Factor rates from 1.08x (vs 365's 1.15x minimum), accepts businesses from £3,000/month (vs 365's £10k), and no personal guarantee under £50k. For most SMEs, iwoca offers better value.

Specifications:

• Amount: £1,000 - £500,000
• Factor Rate: 1.08 - 1.25x
• Min Revenue: £3,000/month
• Approval: 24 hours
• Trustpilot: 4.7/5 (3,250 reviews)

Cost Example: £50k at iwoca's 1.15x = £57,500 total. Same at 365's 1.28x = £64,000. Save £6,500.

2. YouLend - Better for E-commerce

Why choose over 365: If you're an e-commerce business, YouLend's Shopify/Amazon/eBay integrations make application seamless. Slightly lower minimum revenue (£8k vs £10k) and usually no personal guarantee required.

Factor rates 1.10-1.35x are comparable to 365's 1.15-1.40x, but YouLend's specialization in online sellers means better understanding of e-commerce cash flow patterns.

3. Funding Circle - 60% Cheaper (If You Can Wait)

Cost Comparison:

• 365 Finance: £50k at 1.28x = £64,000 (£14,000 cost)
• Funding Circle: £50k at 8.9% APR = £54,580 (£4,580 cost)
• Savings: £9,420 (67% cheaper)

Trade-off: Takes 5-7 days vs 365's same-day, requires personal guarantee, and fixed monthly payments (less flexible than 365's % of sales).

4. Capify - For Larger Amounts (£100k+)

If 365 Finance caps you at £100k but you need more, Capify approves up to £500k. However, expect higher factor rates (1.25-1.45x) and personal guarantee required. Use only if amount needed exceeds what 365 can offer.

5. Market Finance - Broker Network Access

Market Finance is a broker (like us) that gives you access to 20+ lenders including 365 Finance. One application, multiple offers. Good for businesses that don't fit 365's criteria or want to see more options.

6. Kriya - If You Have B2B Invoices

Completely different product: invoice finance instead of MCA. If you invoice other businesses (not consumers), Kriya advances 80-90% of invoice value at 2-5% monthly cost - about 50% cheaper than 365 Finance's MCA. Requires B2B customers with 30-90 day payment terms.

When to Stick with 365 Finance

Despite alternatives, 365 Finance is still the best choice if:

• You're in hospitality - Their industry specialization is unmatched
• You need same-day approval - Fastest in the market
• You value dedicated service - Account managers are excellent
• Your revenue is £15k+ monthly - You'll get their best rates (1.15-1.20x)

How to Choose the Best Alternative

Step 1: Determine your business type and needs
Step 2: Check minimum requirements (revenue, trading time)
Step 3: Compare factor rates from 3-4 providers
Step 4: Choose best rate that meets your speed needs

Bottom Line

365 Finance is excellent for hospitality, but iwoca beats them on rates (1.08x vs 1.15x), YouLend beats them for e-commerce, and Funding Circle beats them on cost (60% cheaper).

Always compare. The 10 minutes spent getting quotes from 3-4 providers saves £5,000-£10,000 on average.