365 Business Finance Business Loans at a Glance
Our Verdict
365 Business Finance is a well-established merchant cash advance (MCA) and revenue-based finance provider targeting UK SMEs in high-footfall sectors — particularly hospitality, retail, and health and beauty. Its core product is a lump-sum advance repaid through an automated daily percentage of card takings, which means repayments flex with your revenue rather than arriving as a fixed monthly charge. The firm has a strong Trustpilot record (5.0/5 from over 1,040 reviews) and quotes approvals within 24 hours for most applicants.
The trade-off is cost and regulation. Factor rates of 1.15x to 1.40x are competitive within the MCA market, but MCAs are structurally more expensive than term loans for businesses that qualify for bank finance. Equally important: this product is not regulated by the FCA. If a dispute arises, you have no access to the Financial Ombudsman Service. For businesses that cannot access term finance — because of trading age, credit profile, or sector — 365 Finance is a credible option. For those that can qualify for lower-cost alternatives, a direct comparison is essential before committing.
Best For
- Hospitality, retail, and health and beauty businesses with consistent card revenue
- Businesses with 6–9+ months trading that do not yet qualify for bank finance
- Operators who need fast working capital without fixed monthly repayments
- Businesses with adverse credit history that is explainable (CCJs considered)
Not Ideal For
- Businesses that process little or no card revenue (cash-dominant operations)
- Businesses eligible for bank-rate term loans — the cost differential is significant
- Borrowers seeking regulated credit protections and FOS access
- Businesses under active insolvency or bankruptcy proceedings (automatic declination)
Key Facts
- Legal entity: 365 Business Finance Limited (Company No. 08267810)
- Registered office: Manor House, 21 Soho Square, London, W1D 3QP
- FCA status: FCA registered — but MCA products are unregulated; no FOS access
- Advance range: £5,000 to £500,000
- Factor rates: 1.15x to 1.40x (total repayable fixed at point of advance)
- Repayment: 10–20% daily automatic deduction from card takings
- Trustpilot: 5.0/5 from approximately 1,040 reviews (as of early 2026)
- Website: 365finance.co.uk
What Are 365 Business Finance Business Loans?
How 365 Business Finance Business Loans Work
365 Business Finance does not offer traditional business loans. Its core product is a merchant cash advance (MCA) — also marketed as revenue-based finance — which is legally and structurally different from a loan. Understanding the distinction matters before you apply.
With an MCA, 365 Finance advances you a lump sum upfront. In return, you agree to repay a fixed total amount — determined by the factor rate applied to the advance — through daily automatic deductions from your card terminal or payment processor. There is no fixed monthly payment and no interest in the conventional sense. You repay more quickly when trading is strong and more slowly when it is quiet. The total you owe is fixed from day one and does not change regardless of how long repayment takes.
Because the product is an assignment of future receivables — not a credit agreement — it falls outside standard FCA consumer credit regulation. This is explicitly stated in 365 Finance’s published complaints notice. It means the Financial Ombudsman Service is not available to you if a dispute arises.
Main Loan Options
Merchant Cash Advance (MCA). The primary product. A lump sum advance from £5,000 to £500,000, repaid as a daily percentage of card takings. Factor rates between 1.15x and 1.40x determine the total repayable. The advance amount is typically calibrated to approximately one month of average card revenue.
Revenue-Based Finance (RBF). Functionally identical to the MCA product but marketed toward businesses using open banking data rather than card terminal data alone. The repayment mechanism and cost structure are the same.
White-label and embedded finance. 365 Finance also provides its funding infrastructure to third-party platforms — payment processors, point-of-sale systems, and card terminal providers — under white-label arrangements. Businesses may encounter 365 Finance’s products embedded within their existing payment provider’s ecosystem.
365 Finance does not offer traditional term loans, overdrafts, revolving credit facilities, or secured commercial mortgages. If you need those products, you will need a different lender.
365 Business Finance Business Loan Rates and Fees
Interest Rates and Representative APR
MCAs do not carry an APR. Instead, the cost is expressed as a factor rate — a fixed multiplier applied to the advance amount to calculate the total repayable. 365 Finance’s published factor rates range from 1.15x to 1.40x.
To illustrate: if you borrow £30,000 at a 1.25x factor rate, you repay £37,500 in total — a fixed cost of £7,500. If you borrow £30,000 at 1.40x, you repay £42,000 — a fixed cost of £12,000. The cost does not change if repayment takes longer than expected.
Converting factor rates to APR is not straightforward because the repayment period is variable. However, as a rough guide, a 1.25x factor rate on a 12-month repayment timeline is approximately equivalent to 35–45% APR. On a faster six-month timeline, the annualised equivalent rises considerably. This is why direct APR comparisons between MCAs and term loans are misleading — the cost structure is fundamentally different.
In the MCA market, 365 Finance’s rates sit in the mid-tier. iwoca’s MCA product starts from around 1.08x; YouLend from around 1.10x. Capify can reach 1.45x at the higher end.
Fees and Charges
365 Finance does not charge application fees, arrangement fees, or monthly management fees on its standard MCA products. The cost of the advance is entirely captured in the factor rate — the difference between the advance amount and the total repayable is the all-in cost.
Early repayment: because the total repayable is fixed, paying down faster does not reduce the cost unless 365 Finance offers a specific early repayment discount. Check the terms of your individual agreement on this point before signing.
What Affects Your Rate
365 Finance’s underwriting relies primarily on merchant processing data rather than traditional credit scoring. The factors most likely to determine your factor rate are:
- Consistency of card revenue: A steady, predictable daily card volume indicates lower repayment risk and typically produces a lower factor rate
- Trading history: Longer-established businesses with more data available tend to qualify for lower rates
- Advance size relative to monthly card revenue: A larger advance relative to your average monthly throughput represents more risk and may attract a higher rate
- Sector and seasonality: Businesses in sectors with pronounced revenue swings (e.g., seasonal hospitality) may be priced differently from those with stable year-round revenue
- Credit history: Adverse credit does not automatically disqualify you, but active insolvency does. Unexplained CCJs or defaults may affect the rate offered
365 Business Finance Business Loan Eligibility
Who Can Apply for 365 Business Finance Business Loans
365 Finance focuses its product on UK SMEs that process regular card and debit payments. The business must be based in the UK. Limited companies are the preferred legal structure; sole traders are considered on a case-by-case basis. LLPs and partnerships may also be eligible depending on their payment processing setup.
The sector coverage is broad — 365 Finance has established particular depth in hospitality (restaurants, cafes, pubs, hotels), retail (high-street and independent), and health and beauty (salons, spas). Service businesses with significant card revenue from other sectors may also qualify.
Businesses operating primarily on cash, invoiced payments, or BACS transfers — rather than card terminals — are typically unsuitable for an MCA structure, since the repayment mechanism depends on automated card transaction sweeps.
Trading History, Turnover and Credit Checks
Minimum trading history is 6 to 9 months of operational trading. This is lower than most high-street banks (which typically require 2+ years) and competitive with other MCA lenders. It makes 365 Finance accessible to earlier-stage businesses that cannot yet meet bank eligibility thresholds.
Minimum monthly card revenue is £5,000 to £10,000 per month. Total monthly business revenue should generally exceed £10,000. The advance amount offered is typically calibrated to around one month of average card takings, so higher card revenue enables access to larger advances.
365 Finance does not rely primarily on credit score. Its underwriting focuses on historical card processing data, accessed either through card terminal integration or open banking. Adverse credit — including historical CCJs — does not automatically exclude an application, provided the credit issues are explainable. Active insolvency or bankruptcy leads to automatic declination.
Security and Personal Guarantees
365 Finance’s standard MCA product does not require the business to pledge a specific asset as collateral. No charge is registered against property or equipment.
However, a director’s personal guarantee may be required depending on the advance size and business profile. Check your offer documentation carefully. If a personal guarantee is included, the director becomes personally liable for the outstanding amount if the business fails to repay — regardless of limited company status.
Because the product is unregulated, the normal FCA rules on credit agreements do not apply. Review the specific terms of your agreement with a solicitor or independent adviser if the advance is material to your business.
365 Business Finance Business Loan Application Process
How to Apply for a 365 Business Finance Business Loan
Applications are submitted directly through 365finance.co.uk. The process is entirely online and does not require a business plan, projections, or collateral documentation. The lender’s algorithm assesses your application using card terminal data or open banking data, which you connect during the application.
The process typically involves: completing an online application form, connecting your card processor or bank account via open banking, receiving an offer in principle (usually within 24 hours), reviewing and signing the agreement, and receiving funds.
Documents and Checks Needed
365 Finance’s documentation requirements are intentionally light compared to bank lending. You will typically need to provide:
- Business and personal identification
- Access to card terminal data (connected directly via integration) or open banking connection to your business bank account
- Recent bank statements (typically 3–6 months) as supporting evidence where required
No formal business plan, audited accounts, or asset valuations are required for standard applications. The underwriting is data-driven rather than document-driven.
Approval and Funding Times
365 Finance quotes approval in principle within 24 hours for most applicants. The firm’s published approval rate is approximately 90% for applicants who meet its core eligibility criteria. Funds are typically transferred within one to two business days of signing the agreement. This makes 365 Finance considerably faster than bank lending (which typically takes days to weeks) and broadly equivalent to other MCA providers.
365 Business Finance Business Loan Repayments, Flexibility and Risk
Repayment Terms and Flexibility
Repayments are automatic and variable. 365 Finance deducts between 10% and 20% of your daily card transactions directly from your payment processor until the total repayable amount is cleared. There is no fixed monthly payment date, no minimum monthly amount, and no defined loan term — the advance simply repays itself as card revenue flows.
This structure provides genuine cash flow flexibility: during a quiet week or a seasonal trough, your repayments naturally fall. During a busy period, you repay faster. The total cost — set by the factor rate at the point of advance — does not change in either scenario.
One implication: if your business experiences a prolonged revenue decline after taking the advance, repayment slows but does not stop. The full amount remains due. Some MCA agreements include provisions for negotiating a temporary pause in repayments if trading deteriorates significantly — check your contract for these terms before signing.
Missed Payments and Default Risk
Because repayments are automated through your card processor, there are no individual payment dates to miss in the conventional sense. The deduction happens at the merchant processing level before funds reach your account.
Default risk arises if the business ceases trading, closes its card processing account, or attempts to route card revenue away from the processor connected to the advance. These scenarios will typically be treated as events of default under your agreement. Given the product is unregulated, the lender has greater contractual flexibility in how it handles enforcement than it would under regulated credit rules. Review the default provisions in your agreement carefully.
365 Business Finance Business Loan Customer Reviews
What Customers Like
365 Finance holds a 5.0/5 Trustpilot rating from approximately 1,040 reviews as of early 2026. Qualitative analysis of published reviews indicates that customers most frequently commend:
- Speed: Fast decision-making and same-day or next-day funding frequently mentioned
- Service quality: Responsive, knowledgeable account managers — several reviews name individual staff members positively
- Absence of pressure: Reviewers note that 365 Finance staff do not employ high-pressure sales tactics, which distinguishes it from some competitors
- Ease of repeat advances: Existing customers report smooth renewal processes, with top-ups offered when a proportion of the original advance has been repaid
Common Complaints
With 1,040 reviews at a 5.0/5 aggregate, published negative feedback is limited. The most common points of friction noted across broader MCA market reviews (applicable to 365 Finance’s product type) include:
- Total cost of capital higher than initially appreciated when the factor rate is not converted to a rough APR equivalent for comparison
- Repayment timelines extending longer than anticipated during slow trading periods
- Lack of FOS access — borrowers who have a dispute have fewer formal escalation routes than with regulated credit products
These are structural features of the MCA product rather than specific criticisms of 365 Finance’s operations.
365 Business Finance Business Loan Support and Regulation
Customer Support
365 Finance operates a direct-to-business model with dedicated account management. Contact is available via telephone and email during business hours. Businesses applying through white-label or embedded finance channels (via third-party payment processors) may interact with 365 Finance’s team directly or through the partner platform depending on the arrangement.
No 24/7 support infrastructure is listed. For urgent queries outside business hours, the standard expectation is next-business-day response.
Regulatory Status and Complaints
365 Business Finance Limited is authorised and regulated by the Financial Conduct Authority. Its FCA registration is publicly searchable on the FCA register.
However — and this is critical — the firm’s MCA and revenue-based finance products are not regulated credit agreements under the FCA’s consumer credit rules. The firm states this explicitly in its complaints documentation: borrowers do not have statutory access to the Financial Ombudsman Service for disputes relating to MCA or revenue-based finance products.
If you have a complaint, your route is 365 Finance’s internal complaints procedure first. If that fails to resolve the issue, options are limited. Legal action is possible but involves cost and time. This is a material difference from regulated business loans — where FOS access provides a free, independent dispute resolution route — and it is a genuine risk consideration for borrowers.
365 Business Finance Business Loans vs Alternatives
365 Business Finance vs YouLend Business Loans
YouLend and 365 Finance are the closest structural comparators in the UK MCA market. Both offer revenue-based advances repaid as a percentage of card or platform revenue. YouLend’s factor rates (1.10x–1.35x) sit at the lower end of 365 Finance’s range (1.15x–1.40x), making YouLend marginally cheaper for comparable advances. The key differentiator is distribution: YouLend operates primarily through embedded partnerships with major platforms — Shopify, Amazon, eBay, Dojo, SumUp — and many businesses encounter it through their existing payment infrastructure. 365 Finance operates a stronger direct-to-business channel alongside its embedded partnerships. If you primarily trade through card terminals rather than e-commerce platforms, 365 Finance may be the more accessible route.
365 Business Finance vs Capify Business Loans
Capify occupies the higher-cost end of the MCA market, with factor rates reaching 1.45x and effective APRs on some structured products exceeding 60%. Against this, 365 Finance’s rates are consistently lower. Where Capify competes is on maximum advance size — it frequently funds deals above £100,000 and into seven figures, whereas 365 Finance caps at £500,000. For hospitality and retail SMEs needing advances under £500,000, 365 Finance is the better-priced option. For larger capital injections or more complex funding structures, Capify may reach further.
365 Business Finance vs Alternative Business Loan Lenders
The MCA structure makes sense for businesses that cannot access term finance — because of trading age, cash flow unpredictability, or credit profile — or for those where the variable repayment flexibility has genuine operational value. If your business qualifies for a term loan, compare directly: Funding Circle starts from 6.9% APR on a 12-month term loan, which will almost always be cheaper than a 1.25x factor rate on an equivalent advance over the same period. High street banks start lower still. The decision between MCA and term finance should be made on total cost and eligibility, not speed alone — the rate gap is material and compounds over the advance period.
Final Verdict: Are 365 Business Finance Business Loans Worth It?
365 Business Finance is a credible, well-reviewed MCA provider — one of the stronger performers in a market that includes less reputable operators. If your business is in hospitality, retail, or a similar card-revenue-heavy sector, needs working capital within 48 hours, and cannot qualify for bank or fintech term finance, 365 Finance is a legitimate choice.
The caveats are real and worth restating. Factor rates of 1.15x to 1.40x are structurally more expensive than term loan APRs for businesses with comparable credit profiles. The product is explicitly unregulated — disputes have no FOS route. And the total cost is fixed from day one: a 1.40x factor rate on £50,000 means repaying £70,000, regardless of how quickly or slowly your card revenue flows.
Use 365 Finance when it fits: fast access, flexible repayment, no fixed monthly obligation, and a direct application process with minimal documentation. Avoid it when cheaper alternatives are available and accessible.
Frequently Asked Questions
Is 365 Finance regulated by the FCA?
365 Business Finance Limited is registered with the FCA, but its merchant cash advance and revenue-based finance products are not regulated credit agreements under the FCA’s consumer credit rules. This means the Financial Ombudsman Service is not available to borrowers in the event of a dispute. Disputes must be resolved through 365 Finance’s internal complaints process or legal action.
What factor rates does 365 Finance charge?
365 Finance’s published factor rates range from 1.15x to 1.40x. A factor rate of 1.25x means that for every £1 advanced, you repay £1.25 in total. The total repayable is fixed at the start of the agreement — it does not change based on how long repayment takes. Your specific rate depends on your card revenue history, trading tenure, advance size, and business profile.
How quickly does 365 Finance approve applications?
365 Finance quotes approval in principle within 24 hours for most applicants. The firm states an aggregate approval rate of approximately 90% for businesses that meet its eligibility criteria. Funds are typically available within one to two business days of signing the agreement.
Can I repay a 365 Finance advance early?
Because the total repayable is fixed by the factor rate, paying down faster does not automatically reduce what you owe unless 365 Finance provides a specific early repayment discount in your agreement. Check the individual contract terms for any early settlement provisions before signing.
Does 365 Finance require a personal guarantee?
A personal guarantee may be required depending on the advance size and business profile. 365 Finance’s standard product does not require a charge over a specific asset. However, if a personal guarantee is included in your agreement, you will be personally liable for the outstanding amount if the business cannot repay — regardless of limited company status. Review your offer documentation carefully.
What is the minimum trading history for 365 Finance?
365 Finance requires a minimum of 6 to 9 months of operational trading. This is lower than most high-street banks and makes the product accessible to businesses that do not yet meet bank eligibility thresholds. You must also process a minimum of £5,000 to £10,000 in average monthly card sales.
Does 365 Finance lend to sole traders?
Sole traders are considered on a case-by-case basis. Limited companies are the preferred legal structure. If you are a sole trader, the line between business and personal liability is already thin — if a personal guarantee is also required, discuss the personal exposure implications before signing.