Choosing between 365 Finance and YouLend is a decision about the offered funding structure, not simply the provider's name. The receipt base, collection method, total cost and contractual conditions determine how the arrangement affects the business. A larger advertised limit or faster initial response does not by itself establish the better fit.
Check the remaining approval steps in our guide, Business Loan Pre-Approval UK: Soft Checks vs Final Approval.
Compare the repayment structures in our guide, Short-Term Business Loans UK: Compare 3–18 Month Options.
This comparison uses provider information checked in November 2026. Public descriptions explain the available approaches, while the final offer determines the amount, pricing and obligations for an individual applicant.
Review the guarantee questions in our guide, Fast Business Loans Without a Personal Guarantee UK.
What the providers describe publicly
365 Finance's revenue-based-finance page describes £5,000–£500,000 advances collected through an agreed share of card transactions. It publishes a typical collection range of 5%–15%, with current initial criteria including six months of trading and at least £5,000 monthly card sales.
YouLend's UK merchant page describes a fixed fee and automatic sales-linked payments. Its FAQ identifies both partner and direct application routes and says it uses Open Banking data for tailored offers.
Those descriptions do not guarantee approval or establish that every applicant receives identical terms. Identify the specific product, applicant entity and route before comparing offers.
The collection structure is the key distinction
365's reviewed product page focuses on an agreed percentage of card sales. YouLend's direct-debit documentation describes variable sales-based collections and a fixed-payment product for some use cases and geographies. Confirm which arrangement is actually offered to the UK business.
A variable collection and a fixed daily or weekly amount create different pressures. The first changes with the defined sales measure, subject to the contract; the second needs cash on its scheduled dates even if receipts fluctuate.
Do not assume a product is variable merely because it comes from a provider known for revenue-based funding. The offer should state the method clearly enough to model.
Questions to put beside each written offer
| Area | Why it matters |
|---|---|
| Eligible receipts | Determines which sales affect the calculation |
| Collection method | Shows whether cash is split before payout or collected separately |
| Minimum or fixed obligations | Changes the low-sales scenario |
| Net payout | Establishes the usable amount available for the business purpose |
| Total payable | Shows the full pound cost before comparing timing |
| Settlement terms | Determines whether paying sooner changes the cost |
| Guarantees and restrictions | Identifies obligations beyond the payment amount |
Use the same cash requirement and trading forecast for both offers. Otherwise, a comparison may reflect different borrowing amounts rather than a meaningful difference in value.
Compare cash-flow funding structures in our guide, Cash Flow Loans UK: Compare Short-Term Funding Options.
Match the structure to sales channels
A shop taking most receipts through a compatible card terminal may have a different setup from an online seller receiving several marketplace payouts. A business paid mainly by invoices has a different receipt profile again.
Ask which channels are included, whether the calculation uses gross sales or net settlement and how refunds or adjustments are handled. Do not assume all money entering the bank account is eligible sales; transfers and financing proceeds need separate treatment.
Prepare the supporting records using our guide, UK Business Loan Bank Statements: What Underwriters Check.
Where collection occurs before settlement reaches the bank, forecast the net cash available. Where it occurs by direct debit, keep the required funds available on the collection date. Both affect working capital even though the operational mechanics differ.
Model a variable percentage
Suppose a hypothetical arrangement collects 10% of eligible sales. At £35,000 monthly sales, the percentage calculation produces £3,500. At £20,000, it produces £2,000 before considering any additional contractual requirements.
These figures are generic examples, not quotes from either provider. Lower collections may help with changing revenue, but they do not guarantee enough cash remains for fixed costs.
A business with rent, wages and other commitments close to its available margin may still struggle. Test the cash left after all operating expenses and existing finance, not just the amount retained after the funding deduction.
Model a fixed schedule separately
For comparison, an illustrative fixed £700 weekly payment totals £2,800 over four collection weeks and £3,500 over five. The cash calendar matters; a simple monthly average can hide a difficult week.
A predictable payment may suit a business with reliable receipts and sufficient surplus. It can be harder to manage where sales are concentrated in a short season or depend on uncertain customer-payment dates.
Do not compare a fixed weekly amount with a sales percentage until both have been applied to the same forecast. Ask whether any reconciliation, variation or other mechanism exists, and rely on the actual agreement rather than an assumed adjustment.
Compare the full cost on equal net proceeds
Consider two hypothetical offers, neither attributed to 365 Finance nor YouLend. Both provide £15,000 net. One requires £17,700 total payments; the other requires £18,300. Their costs above net proceeds are £2,700 and £3,300 before any other charges.
The £600 difference matters, but the collection schedule and conditions still need review. A lower-cost arrangement that creates an immediate cash shortage may not be workable.
Include withheld charges and separate broker fees where relevant. If a fee reduces the payout, calculate whether enough cash remains for the stated purpose rather than treating the headline approved amount as spendable funds.
Fixed fees and annualised costs answer different questions
A fee expressed as a percentage of the advance is not automatically an APR. The annualised cost depends on how long the business has use of the money and the dates of repayments or collections.
A fixed fee can make the total contractual amount clear while still requiring careful comparison with another facility. If receipts are strong and collections finish quickly, the business may pay the same fee over a shorter period, depending on settlement terms.
Ask for the exact early-payment calculation. A statement that extra payments are allowed does not necessarily mean the provider reduces every part of the funding cost.
Consider the business purpose
A short stock cycle, a marketing test and a long-lived equipment purchase create different cash needs. Choose the amount and structure around the purpose rather than adapting the spending plan to the largest available offer.
For stock, forecast when it sells and when net receipts arrive. For marketing, distinguish attributed revenue from additional contribution. For equipment, include installation and the time required to generate useful capacity.
If the requirement is an ongoing operating deficit, neither a variable nor a fixed schedule resolves the underlying economics. The business needs a credible plan that supports normal costs and the new obligation.
Check eligibility without overreading thresholds
Published starting criteria are not a promise of funding. A provider may need to assess current trading, existing commitments, the collection setup and other application information.
Keep recent changes visible. If card sales are falling, a historic average may not reflect the cash available during the proposed funding period. If the business has several entities, explain which one receives the sales and will sign the agreement.
Do not substitute another country's product figures or a partner-specific example for the UK offer. Eligibility and availability can vary by route, and a website calculator remains an indication until assessment is complete.
Understand regulatory and personal obligations
YouLend's regulatory information distinguishes its payment-institution authorisation from its UK business-financing agreements, which it says are not FCA-regulated for providing finance. Ask each provider to explain the status and complaint route for the exact product offered.
Review personal guarantees, security, default provisions and restrictions on changing payment arrangements or obtaining further finance. Do not infer the absence of personal obligations from an unsecured label.
Where a term is material and unclear, obtain an explanation before signing and appropriate independent advice. The funding decision should be based on the agreement as well as the sales presentation.
Compare timing and service needs
Ask what a stated turnaround means: initial indication, approved terms, completed documents or cleared funds. A supplier deadline depends on the last stage, not merely a quick quote.
Consider who handles questions about collections, account reconciliation and a change in circumstances. A clear support process matters when payments are linked to several sales channels or a business experiences disruption.
If using an intermediary, clarify fees and remuneration. YouLend's FAQ says it may pay introducing third parties commission. Ask about the actual arrangement rather than assuming an introduction is costless or independent of commercial incentives.
Common questions about the funding structures
Is one provider automatically better for seasonal businesses?
No. Apply the offered collection rules to busy and quiet periods, including fixed costs and any contractual minimums. The specific agreement determines the result.
Does a fixed fee mean the same thing as a fixed repayment?
No. A fixed fee concerns the cost amount, while a fixed repayment concerns the timing and size of payments. A product can combine a fixed fee with variable collections.
Can a higher funding limit improve cash flow?
Only if the amount is needed and affordable. More funding also brings a larger obligation, so compare the smallest workable requirement.
Can the business choose the collection method?
Availability depends on the provider, route and assessment. Ask what options are actually offered rather than assuming every documented product is available to every applicant.
Choose the structure that survives a weaker forecast
Compare net proceeds, total payable and the precise collection mechanism using the business's own receipts and costs. A workable offer should meet the purpose without consuming cash required for essential operations.
To discuss the requirement, contact Mehmi Financial Group with the intended use, sales channels, current commitments and any written offers.