Approval Guide

How to Get Approved for Business Funding UK 2025

12 proven tips to improve your approval chances from 60% to 90%+. What lenders actually look for, must-have documents, and mistakes that get you declined.

60% → 90%

Approval rate

Proven tips

Key factors

24hr

Fast decisions

The 3 Things Lenders Actually Check

Revenue (Most Important)

Consistent £5k-£10k+ monthly sales = 80% chance of approval

Time Trading

6+ months with stable sales = approved, under 3 months = declined

Sales Trend

Growing or stable = approved, declining 20%+ = declined

Credit score matters less than you think - MCAs approve 70% of businesses banks decline.

12 Ways to Improve Approval Chances

Apply to Right Provider for Your Revenue

Under £3k/month

No MCA options (all decline) - try Startr

£3k-£8k/month

iwoca only (others auto-decline)

£8k-£10k/month

iwoca or YouLend

£10k+/month

All providers accept

Common mistake: Applying to YouLend with £5k/month revenue = automatic decline. Apply to iwoca instead (£3k minimum) and you are approved.

Wait Until 6 Months Trading

Under 6 months

90% decline rate

6-12 months

70% approval rate

12+ months

85%+ approval rate

If you are at 4-5 months, waiting 1-2 months dramatically improves chances. Use credit card or overdraft short-term rather than getting declined and damaging future applications.

Show Consistent Sales (Not One-Off Spike)

Good pattern

£10k, £11k, £9.5k, £10.5k, £11k (consistent)

Bad pattern

£3k, £2k, £25k, £4k, £3k (one spike, otherwise low)

Lenders want consistent, predictable revenue. One great month does not offset five poor ones.

Have Bank Statements Ready (3-6 Months)

Required documents

Last 3 months business bank statements (PDF)

Card statements

Last 3 months card processing statements

Company info

Company House information (if ltd company)

Director ID (passport or driving license)

Pro tip: Use open banking instead of uploading (faster, more secure, higher approval rate).

Apply Before 10am on Monday-Thursday

Best time

Monday 9-10am (processed first, decisions same day)

Worst time

Friday after 2pm (delayed until Monday)

Lenders process applications in order received. Early applications get faster decisions and better rates (underwriters fresh, not rushed).

Be Honest About Credit Issues

Good approach

"I have 2 CCJs from 2022 totaling £8k, both now paid. Business has been stable since then with £12k monthly revenue."

Bad approach

Hide it, hope they do not check. They always check. Dishonesty = automatic decline + blacklist.

If you have CCJs, defaults, or past issues - declare them upfront. Lenders find out anyway (credit checks), and honesty improves approval chances.

Choose Realistic Amount

Rule of thumb

Maximum funding = 2-3x monthly card sales

Examples

£10k/month → Max £20-30k | £20k/month → Max £40-60k | £50k/month → Max £100-150k

Asking for £100k with £15k monthly sales = automatic decline. Ask for £30-40k = high approval chance.

Fix Your Business Bank Account First

Red flags

Regular overdraft limit breaches, returned direct debits/bounced payments

Also avoid

Gambling transactions from business account, frequent cash withdrawals (suggests unreported sales)

Spend 1-2 months cleaning up account (stop bouncing, reduce overdraft usage) before applying.

Apply to 3-4 Providers Simultaneously

Why

Get competing offers, choose best

Get multiple quotes to compare rates and terms.

Do not Apply if Sales Declining

Wait until

Sales stabilize or grow

Declining sales trend = automatic decline. Wait for improvement.

Have Clear Use of Funds

Good

"Equipment purchase" better than vague "working capital"

Specific purposes improve approval chances.

Respond to Lender Questions Within 30 mins

Why

Fast responses = faster approval

Quick turnaround shows preparedness and improves chances.

Approval Rates by Provider

iwoca

80-85%

YouLend

75-80%

365 Finance

70-75%

Funding Circle

40-50%

High Street Banks

30-40%

Takeaway: MCAs (YouLend, iwoca, 365) approve 2-3x more businesses than banks.

Common Decline Reasons

1. Revenue too low

40% of declines

2. Trading time under 6 months

25% of declines

3. Declining sales trend

15% of declines

4. Active insolvency

10% of declines

5. Insufficient card sales

10% of declines

Frequently Asked Questions

What do lenders check most when approving funding?

Three things: 1) Revenue (most important) - Consistent £5k-£10k+ monthly sales = 80% approval. 2) Time trading - 6+ months = approved. 3) Sales trend - Growing or stable = approved. Credit score matters less than you think - MCAs approve 70% of businesses banks decline.

How can I improve my approval chances?

Apply to the right provider for your revenue (£3k/month = iwoca only, £8k+ = multiple options), wait until 6 months trading, show consistent sales (not one-off spikes), have bank statements ready, and apply before 10am Monday-Thursday for fastest processing.

What is the approval rate by provider?

iwoca: 80-85%, YouLend: 75-80%, 365 Finance: 70-75%, Funding Circle: 40-50%, High Street Banks: 30-40%. MCAs approve 2-3x more businesses than banks.

Why do most applications get declined?

40% declined for revenue too low, 25% for trading time under 6 months, 15% for declining sales trend, 10% for active insolvency, 10% for insufficient card sales. Most declines happen because businesses apply to wrong provider for their revenue level.

Final Tips

Best way to improve approval odds: Apply to right provider. More businesses get declined because they applied to wrong lender (revenue too low, wrong industry) than because of business issues.

Use comparison service that matches you to appropriate providers based on your revenue, industry, and trading history. Your approval chance goes from 60% (applying blind) to 85%+ (applying to matched lenders).

Get Matched to Right Providers

We match you to lenders likely to approve YOUR business. Improve approval chances from 60% to 85%+.

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