Small Business Funding UK: Best Options 2026
Best for Most Small Businesses: Merchant Cash Advance (MCA) - Get £3,000-£100,000 with 90% approval rate. Flexible repayments that match your revenue, minimal paperwork, based on your monthly card sales, not credit score.
Top 5 Small Business Funding Routes UK
Merchant Cash Advance (MCA)
Best Overall
£3,000 - £1,000,000
90% (bad credit OK)
Retail, hospitality, services
£3k+/month card sales, 3 months trading
- Flexible repayments match your revenue
- Based on sales not credit score
- Accessible to most small businesses
Invoice Finance
For B2B Businesses
£10,000 - £5M
24 hours
Businesses invoicing other companies
- Unlock cash tied up in invoices
- Up to 90% of invoice value
Business Overdraft
Cash Flow Smoothing
£1,000 - £50,000
1-2 weeks
Short-term cash flow management
Start Up Loans
Government Scheme
£500 - £25,000
6% fixed
Very new startups (under 12 months)
Bank Term Loan
Traditional Option
£25,000+
4-8 weeks
62% (good credit needed)
Established businesses with perfect credit
How to Choose the Right Option
Growing your business?
→ MCA (flexible, accessible)
Have outstanding invoices?
→ Invoice Finance (80-90% of value)
Perfect credit, not urgent?
→ Bank loan (lower rates)
Brand new startup?
→ Start Up Loans scheme
Small amounts needed?
→ Business overdraft or credit card
Get Your Small Business Funding Quote
Get matched with the right funding for your business growth
90% approval rate • Flexible repayment options • £3k-£1M available
Apply NowFrequently Asked Questions
What is the best small business funding UK?+
Merchant Cash Advance is best for small businesses needing £3k-£100k. 90% approval rate, flexible repayments that match your revenue. Based on your card sales, not credit score. Perfect for retail, hospitality, and service businesses taking card payments.
How do small businesses get funding in the UK?+
Top options: 1) Merchant Cash Advance (most accessible, 90% approval), 2) Invoice Finance (for B2B businesses), 3) Start Up Loans (government scheme), 4) Bank overdrafts (if approved), 5) Business credit cards (small amounts). MCA has the highest approval rate at 90%.
Can I get funding if my credit is bad?+
Yes! Merchant Cash Advance is designed for businesses regardless of credit history. Approval is based on your card sales performance, not personal credit score. This makes it accessible to many small businesses that banks might decline.