Capify and 365 Finance should be compared by the specific agreement offered, because a scheduled business loan and a card-sales-linked advance affect cash flow differently. The relevant questions are how much cash reaches the business, what it pays in total and whether collections remain manageable when trading weakens.
This comparison uses provider information checked in November 2026. It focuses on Capify's currently promoted business-loan route and 365 Finance's revenue-based funding. It does not assume every product associated with either brand has the same eligibility or repayment rules.
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.
The core difference in the reviewed products
Capify's small-business-loan page advertises £10,000–£3 million and fixed regular repayments. Its FAQ describes daily or weekly collection and says personal guarantees are required.
365 Finance's revenue-based product page describes £5,000–£500,000 collected through an agreed percentage of card sales. Its public criteria include six months of trading and at least £5,000 monthly card sales.
A fixed payment does not automatically reduce with lower sales. A percentage collection changes with the defined sales base, but the cash left after operating costs still needs testing. Neither structure is automatically affordable simply because the provider offers it.
Compare the right eligibility measure
Capify's underwriting page states a UK-registered business, at least 12 months of trading and £10,000 monthly turnover among its core business-loan criteria. It also states a personal-guarantee requirement.
Turnover and card sales are different measures. A firm receiving most money by bank transfer may meet a turnover figure while having limited card receipts. A retailer with strong card takings may have a different fit, subject to each provider's assessment.
Meeting public starting criteria does not guarantee approval, amount or pricing. Explain recent changes in trading and disclose existing finance so the assessment reflects the current cash position.
A side-by-side decision framework
| Factor | Capify business-loan route | 365 Finance revenue-based route |
|---|---|---|
| Collection approach described publicly | Fixed regular payments; daily or weekly collection described in FAQ | Agreed percentage of card sales |
| Initial history measure | Business trading history and turnover | Business trading history and card sales |
| Main forecast question | Can cash cover each scheduled collection? | Can remaining sales receipts cover costs after deductions? |
| Pricing comparison needed | Net proceeds, total payable and every fee | Net proceeds, agreed cost and every other applicable charge |
The table summarises the linked pages and the practical questions they create. Use the actual offer to confirm the final structure, including any conditions not captured by a short product description.
Look beyond the headline cost
Capify publishes a fee schedule that includes processing, origination and service charges, but the page displays a February 2023 update date. Confirm the current applicable charges in the offer rather than assuming that older schedule is a complete contemporary quote.
365's FAQ describes a single agreed cost for its revenue-based product. That does not establish whether its personalised offer is cheaper than another provider's full arrangement.
Ask both for net disbursement and total contractual payments. Include any separate intermediary charge and establish whether fees are withheld, paid separately or included in the repayment balance.
Compare equal amounts of usable cash
Consider two hypothetical offers, neither attributed to the named providers. Offer A gives £30,000 net and requires £35,000 total payments. Offer B gives £30,000 net and requires £36,500. The costs above net proceeds are £5,000 and £6,500 before any other charges.
A £1,500 difference is material, but payment timing can also determine whether an offer works. A lower total cost may still be difficult if cash is collected before customer invoices clear.
If a facility advertised as £30,000 has £600 withheld, only £29,400 is available for the business purpose. Adjust the comparison rather than treating the gross figure as the net payout.
Model fixed payments on actual dates
Suppose an illustrative loan collects £800 weekly. Four collection weeks require £3,200; five require £4,000. A monthly average can conceal the latter cash requirement.
If customer receipts are concentrated at month end, daily or weekly collections may require a working reserve. Check the agreed calendar, first payment date and treatment of non-processing days rather than guessing the number of deductions.
Fixed payments can be predictable, but predictability is different from affordability. Model weaker revenue and late customer payments without assuming the schedule will automatically change.
Model sales-linked collections against margin
Suppose a hypothetical advance collects 10% of £40,000 eligible monthly sales. The percentage calculation produces £4,000. If sales fall to £25,000, it produces £2,500 before any other applicable conditions.
These are generic examples, not provider quotes. The remaining cash must still pay stock, wages, premises costs, taxes, refunds and existing finance. Lower collections do not guarantee stability when fixed operating costs remain high.
Use the contract's receipt definition. A percentage of gross card sales and a percentage of net bank settlement can produce different amounts. Confirm how refunds, platform fees and multiple sales channels are handled.
Understand factor rates and fixed fees
A factor rate or fee percentage does not automatically equal APR. For example, £20,000 multiplied by a hypothetical factor of 1.2 gives £24,000 before any separate fees. That shows a £4,000 difference, but not the annualised cost of the payment schedule.
An annualised comparison needs the dates of cash received and paid, together with relevant charges. Faster collections can shorten the time the business uses the money without necessarily reducing a fixed total cost.
Ask for early-settlement terms in pounds for a proposed date. Do not assume a quick repayment removes every fee or makes a short-lived cash gap inexpensive to finance.
Check personal obligations carefully
Capify's public guarantee statement is a reason to read the guarantee itself, including who signs and what it covers. An unsecured loan can still expose a guarantor to personal liability even where no specific business asset is taken as collateral.
For either provider, establish security, personal guarantees, default terms and restrictions on further borrowing or changing payment arrangements. Do not infer the answer from a marketing phrase alone.
Ask for the contracting entity, applicable product status and complaint route. A business-loan agreement and a receivables-finance arrangement should not be assumed to carry identical rights or procedures.
Match the product to the business purpose
A predictable short-term cash gap may support a different schedule from a seasonal stock purchase. Equipment with a long useful life may warrant considering whether a short repayment period creates unnecessary pressure.
If funding supports growth, include the cost of fulfilling extra sales and the time before receipts clear. Turnover growth can increase working-capital needs rather than immediately generate repayment cash.
If the purpose is to cover repeated operating losses, review the underlying plan before adding finance. Neither fixed nor variable collection resolves a persistent deficit without a credible commercial change.
Compare speed without relying on marketing headlines
Ask whether a stated turnaround refers to an eligibility indication, approved offer, signed documents or cleared funds. The practical deadline is when money becomes usable for the intended payment.
Prepare bank records, sales evidence and current commitments early. A fast initial response does not remove further checks, and an incomplete application can change the timetable.
Do not accept an unsuitable cost or collection schedule solely to meet a deadline that could be managed through a confirmed alternative arrangement. Compare the full commercial outcome.
Review existing debt and any refinancing
If new finance settles an existing balance, request a breakdown of the settlement, charges and net additional cash. The gross new facility is not the amount available for fresh spending.
Compare the complete future payment total with keeping the existing arrangement. A lower periodic payment may result from extending the repayment period, and that can increase total cost.
Update the cash forecast for every deduction. Two individually manageable facilities can become difficult when their collections coincide with payroll or major supplier payments.
Common questions about Capify and 365 Finance
Which provider is cheaper?
The public pages do not establish a universal answer. Compare written offers using equal net funding, total cost and the actual collection schedule.
Does Capify collect a percentage of sales on every product?
Do not assume that. The business-loan pages reviewed describe fixed regular payments. Identify the product and contract before applying a percentage model.
Does 365's card-sales structure remove repayment risk?
No. The business must still have enough remaining cash for operations and other obligations. Model weaker sales and the complete agreement.
Are eligibility figures the same as approval criteria?
They are starting information, not a guarantee. Final assessment, offer and permitted use still need confirmation.
Choose a structure the business can sustain
Compare net proceeds, full costs and obligations, then apply each offer to the same lower-sales forecast. The better fit is the agreement that meets a justified need while leaving enough cash to operate.
To discuss the requirement, contact Mehmi Financial Group with the funding purpose, current trading, existing commitments and any written offers.