Business Funding Approval Rates UK 2025
Which lenders approve the most businesses? iwoca (85%), YouLend (80%), banks (35%). Full breakdown by lender type, business size, and industry for your business growth.
Highest Approval Rates 2025
iwoca:
85% approval rate (highest)
YouLend:
80% approval rate
365 Finance:
75% approval rate
Capify:
70% approval rate
Funding Circle:
45-50% approval rate
High Street Banks:
30-40% approval rate (lowest)
Why Such Different Approval Rates?
MCAs Approve 2-3x More Than Banks
MCAs focus on revenue: Current sales matter, not credit history
Banks focus on credit: Past behavior matters more than current performance
MCAs are flexible: Accept seasonal, newer, or challenged credit businesses
Banks are rigid: Strict criteria, one size fits all
Approval Rates by Business Size
Under £5k Monthly Revenue:
£5k-£10k Monthly Revenue:
£10k-£20k Monthly Revenue:
£20k+ Monthly Revenue:
How to Maximize Your Approval Chances
Apply to right lender for your revenue:
Under £10k? iwoca only. £10k+? All options
Wait until 6+ months trading:
Approval rate jumps from 30% to 75%
Apply to 3-4 lenders:
One declines you? Others might approve (different criteria)
Show growing/stable sales:
Declining revenue = automatic decline from most
Conclusion
Highest approval:
iwoca at 85% (best choice for most SMEs)
Lowest approval:
Banks at 35% (avoid unless excellent credit)
Use MCA providers (iwoca, YouLend, 365) for 2-3x better approval odds than traditional banks for your business growth.
Apply to High-Approval Lenders
We match you to lenders with 75-90% approval rates
For businesses like yours
Get MatchedFrequently Asked Questions
Which lenders have the highest approval rates?+
Highest approval rates 2025: 1. iwoca - 85% approval rate (highest), 2. YouLend - 80% approval rate, 3. 365 Finance - 75% approval rate, 4. Capify - 70% approval rate, 5. Funding Circle - 45-50% approval rate, 6. High Street Banks - 30-40% approval rate (lowest).
Why do MCAs approve 2-3x more than banks?+
MCAs approve 2-3x more than banks because: MCAs focus on revenue (current sales matter, not credit history), Banks focus on credit (past behavior matters more than current performance), MCAs are flexible (accept seasonal, newer, or challenged credit businesses), Banks are rigid (strict criteria, one size fits all).
How can I maximize my approval chances?+
To maximize approval chances: Apply to right lender for your revenue (under £10k? iwoca only. £10k+? All options), wait until 6+ months trading (approval rate jumps from 30% to 75%), apply to 3-4 lenders (one declines you? Others might approve with different criteria), show growing/stable sales (declining revenue = automatic decline from most).