What are the best alternatives to YouLend?

Why consider alternatives to YouLend?

YouLend has grown to become one of the UK’s most visible revenue-based lenders, embedded within platforms like eBay, Shopify, and global payment processors so that businesses can access advances directly from their existing dashboard. For many ecommerce and hospitality businesses, this seamless integration makes it the default choice.

But it is not always the best choice. YouLend’s availability depends on your payment processor — if you’re not using a partner platform, you may not qualify at all. Factor rates on smaller or higher-risk advances can be significant. And for businesses that have grown past the startup phase, a traditional loan from a mainstream lender may be substantially cheaper.

This guide covers six alternatives across the spectrum: other MCA providers, revenue-based lenders, and traditional lenders worth considering when your business has outgrown pure MCA products.

Top YouLend alternatives

1. Liberis — Best for platform-embedded ecommerce funding

Liberis is a global revenue-based finance provider embedded in platforms including Barclaycard, Lloyds Cardnet, Dojo, and several major ecommerce platforms. Like YouLend, it collects repayments automatically as a percentage of card or online sales. It is particularly strong for UK ecommerce businesses processing through supported payment platforms.

Rates and amounts: Factor rates from approximately 1.09; advances from £1,000–£2,000,000.

Eligibility: 6 months trading; minimum monthly card sales (typically £5,000+); available through partner platforms only.

Pros: Very low friction via embedded platforms; automatic flexible repayment; no fixed monthly payment; quick decisions.

Cons: Only accessible through partner platforms; not directly available to all businesses; factor rates increase significantly for higher-risk profiles.

Best for: Ecommerce, hospitality, and retail businesses processing card payments through Liberis partner platforms who want a frictionless, integrated funding experience.

2. 365 Business Finance — Best for high-volume MCAs

365 Business Finance is a specialist MCA provider focused on UK businesses with consistent card transaction volumes. It offers advances from £10,000 to £400,000 and is known for competitive factor rates on high-volume, established businesses. Its model is straightforward: one advance, one factor rate, repaid daily as a percentage of card sales.

Rates and amounts: Factor rates from approximately 1.09; £10,000–£400,000.

Eligibility: 6 months trading, minimum £10,000/month in card sales.

Pros: Competitive factor rates for high-volume businesses; no personal guarantee on some products; transparent pricing; specialist in MCAs (focus vs. breadth).

Cons: Minimum card volume requirement; smaller maximum advance than YouLend; less embedded in payment platforms so requires a direct application.

Best for: Established businesses with consistent high card volume (restaurants, retailers, salons) who want a competitive factor rate from a specialist MCA provider.

3. Capify — Best for flexible advance structures and adverse credit

Capify offers both MCAs and traditional small business loans, accepting applicants with CCJs or adverse credit that YouLend might decline. Its factor rates start higher than competitors (around 1.2) but its accessibility — 6 months trading, £10,000 monthly turnover, adverse credit considered — means it reaches businesses other MCA providers won’t touch.

Rates and amounts: Factor rates from 1.2; loan/MCA amounts from £5,000–£500,000.

Eligibility: 6 months trading, £10,000+ monthly turnover; CCJs and adverse credit considered.

Pros: Adverse credit considered; both MCA and loan structures available; fast decisions; minimal documentation.

Cons: Factor rates start higher than Liberis or 365 Business Finance; total cost of credit can be significant; not the cheapest option for well-qualified businesses.

Best for: Businesses that have been declined by YouLend or other MCA providers due to credit history, or that want the option of a traditional loan structure instead of revenue-based repayment.

4. iwoca — Best for transitioning from MCA to traditional lending

iwoca’s Flexi-Loan is the natural next step for businesses that have been using MCAs and are now large enough and established enough to qualify for traditional borrowing at lower effective rates. iwoca’s 12-month trading requirement and £30,000+ annual turnover threshold is accessible, and its revolving credit structure still offers flexibility similar to an MCA facility.

Rates and amounts: From approximately 2% per month; £1,000–£500,000; 1 day–24 months.

Eligibility: 12 months trading, £30,000+ annual turnover; some adverse credit considered.

Pros: Revolving structure (like an MCA in flexibility); fixed interest rather than factor rate (easier to compare); higher maximum than many MCA providers; fast decisions.

Cons: Fixed repayments (monthly rather than revenue-based daily); personal guarantee typically required; rates can be higher than a Funding Circle term loan.

Best for: MCA users that have been trading for 12+ months and want to benchmark their next advance against a traditional revolving credit facility.

5. Funding Circle — Best for lower-rate term loans

Once a business has 2 years of trading history and consistent accounts, Funding Circle becomes a compelling alternative to MCAs. A £100,000 term loan at 10% APR over 3 years costs substantially less in total than a £100,000 MCA at a 1.25 factor rate — the difference can run to tens of thousands of pounds. Funding Circle requires a step change in documentation but rewards it with materially lower cost of capital.

Rates and amounts: 6.9%–99% APR; £10,000–£500,000; 6 months–6 years.

Eligibility: 2 years trading, £50,000+ annual turnover, no unsatisfied CCJs.

Pros: Lowest effective rates among mainstream alternatives; fixed monthly repayments with a clear end date; no early repayment charge.

Cons: Fixed monthly repayments don’t flex with revenue (unlike MCA); stricter eligibility; 1–3 day decision process.

Best for: Established businesses currently using MCAs that want to quantify the cost saving from switching to a term loan before their next renewal.

6. Capital on Tap — Best for revolving credit with spending rewards

Capital on Tap offers revolving credit up to £250,000, which can function as working capital alongside or instead of an MCA. Unlike an MCA, it carries a known APR (from 14.9%), a clear credit limit, and earns rewards on business card spending — making it a more transparent and rewarding product for businesses whose primary need is ongoing working capital rather than one large advance.

Rates and amounts: From 14.9% APR; up to £250,000 revolving credit.

Eligibility: 12 months trading, £50,000+ annual turnover.

Pros: Revolving credit line rather than a single advance; known APR makes cost transparent; rewards on card spending; instant decisions for existing customers.

Cons: Monthly repayments (not revenue-based); lower maximum than YouLend; not suitable if your primary need is a large one-off advance.

Best for: Businesses that use MCAs primarily for ongoing working capital management and would benefit from a revolving credit line with rewards and transparent APR instead.

Comparison table

How to choose the right alternative

Choose Liberis if you process card payments through a Liberis partner platform and want seamless embedded funding with competitive factor rates.

Choose 365 Business Finance if you have strong, consistent monthly card volumes and want a specialist MCA provider with competitive pricing.

Choose Capify if you’ve been declined by YouLend or other MCA providers and need a lender that considers adverse credit.

Choose iwoca if you’ve been trading 12+ months and want to test whether a revolving loan is cheaper than renewing your next MCA.

Choose Funding Circle if you have 2 years of trading and want to calculate the total cost saving from moving to a term loan before renewing your advance.

Choose Capital on Tap if your MCA use is primarily for working capital management and you’d benefit from a credit line with a known APR and rewards on spending.

As a general principle: MCA products are excellent for cash-strapped businesses in their first 12–18 months. As trading history accumulates and accounts strengthen, the cost saving from moving to term lending is often substantial. Review the total cost of credit at every renewal — not just the monthly payment or factor rate — to ensure you’re accessing the most cost-effective capital for your stage.