Business loans for non-homeowners: funding options when you rent
Yes, businesses run by tenants can borrow. Merchant cash advances, revenue-based finance, invoice finance and asset finance…
Cash flow finance
Rent advance for landlords: up to 12 months' rent up front
Get up to 12 months of your tenants' rent as a lump sum, with one fixed fee and no charge on the property. How landlord rent advances work and who they suit.
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- Amount
- £1,000 to £75,000Per property, from the provider on our panel
- Rent covered
- Up to 12 monthsOf residential rent
- Security
- No charge on the propertySoft credit search only
- Cost
- One fixed feeAgreed in writing before you sign
In short
What you need to know.
A landlord rent advance pays you up to 12 months of rent from a residential tenancy as one lump sum, in exchange for that future rent.
It is not a loan: the provider buys the rental income for one fixed fee agreed up front, takes no charge on the property and runs a soft credit search. Factored, a provider on our panel, offers £1,000 to £75,000 per property to individual landlords, companies and SPVs, with no trading history or accounts needed.
What landlords use a rent advance for
EPC and energy upgrades
insulation, heating and glazing to meet the minimum energy efficiency standard for rented homes.Repairs
boilers, roofs and other urgent work that cannot wait.Refurbishment
updating a property between tenancies.Tax bills
income tax or Corporation Tax on rental profits.Growing a portfolio
deposits and costs on the next purchase.Cash flow
smoothing a gap without remortgaging.
About rent advance for landlords
Specialist knowledge. Better outcomes.
Landlords often need a modest sum quickly: an EPC upgrade, an urgent repair, a refurbishment between tenancies or a tax bill.
Remortgaging takes weeks and costs fees; a second charge adds debt to the property. A rent advance is a different route. A specialist provider pays you the rent your tenant is due to pay, up to a year of it, in one lump sum now, and collects that rent over the term.
Smart Funding Solutions is a broker. Rent advances are offered by specialist providers such as Factored, which is on our panel, and we compare them with the borrowing routes landlords and property businesses normally use, so you can see which costs less for what you need.
- Access to 300+ lendersWhole-of-market search across our lender panel.
- Independent brokerSmart Funding Solutions is an independent broker, not a lender.
- Tailored to your caseYour case presented to lenders suited to it.
- Support from start to finishOur experts handle the process from start to finish.
How a rent advance works
- Check the tenancythe provider looks at your tenancy agreement, proof of ownership and the rent coming into your bank account.
- Agree the advanceyou choose how many months of rent to sell, up to 12, and the provider quotes one fixed fee in writing.
- Receive the moneyonce approved and signed, the lump sum is paid, often within a day.
- Rent is collectedthe agreed share of the rent is collected over the term until the advance is cleared.
Rent advance, loan or second charge?
A rent advance is capped by your rent roll, so it suits smaller, targeted needs. For larger sums, borrowing against the property usually costs less over time: a second charge business loan raises money behind your existing mortgage, a bridging loan funds a purchase or refurbishment with a clear exit, and a short-term business loan can suit a property company with trading accounts. A rent advance's strengths are speed, no valuation and no charge on the property.
Who a rent advance suits
- Landlords with a tenant in place on a signed residential tenancy and a reliable rent history.
- Landlords who need a modest sum quickly and would rather not remortgage.
- New landlords or SPVs without the trading history or accounts many lenders ask for.
- Landlords who want a known total cost from day one.
It is less suited to vacant or commercial property, a tenant who may be leaving soon, or a need larger than a year's rent. Remember that the rent you sell is no longer available to pay your mortgage and other costs during the term.
What you will need
- A signed tenancy agreement for the property.
- Proof that you own the property.
- Bank statements showing the rent being received.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
Key features
| Feature | What Factored says |
|---|---|
| Amount | £1,000 to £75,000 per property |
| Rent covered | Up to 12 months of rent |
| Who can apply | Individual landlords, limited companies and SPVs, with no minimum portfolio |
| Property | UK residential lets with a signed tenancy, including HMOs and student lets |
| Cost | One fixed fee agreed in writing before you sign |
| Security | No charge registered against the property |
| Credit check | Soft search only |
| Status | Not a loan: a purchase of rental income |
The provider sets the final amount and fee for each case. Factored's FAQs refer to a signed assured shorthold tenancy with at least six months remaining. In England, the Renters' Rights Act turned existing assured shorthold tenancies into assured periodic tenancies from 1 May 2026, so check with the provider how it assesses your tenancy before you apply.
The broker’s view
How we help landlords
Tell us about the property, the tenancy, the rent and what the money is for. We check whether a rent advance or a loan secured on property would cost you less, and introduce you to the provider or lenders that fit. If the tenant falls behind, the provider's agreement sets out what happens, so we make sure you read that section before you sign.
It is free to enquire; any broker fee is disclosed separately before you proceed. Start with our Instant Quotes tool, which includes rent advances for landlords alongside other options.
FAQs
Questions clients ask
Is a landlord rent advance a loan?
No. The provider buys part of your future rental income for a fixed fee and pays you the money up front. Factored describes it as a sale of rental income rights rather than a loan, with no interest building up over time.
How much rent can I get up front?
Up to 12 months of rent. Factored, the provider on our panel, offers £1,000 to £75,000 per property, depending on the rent the property earns and the tenancy.
Will a rent advance affect my mortgage or credit score?
Factored says it takes no charge on the property, needs no valuation or remortgage and runs soft credit searches only, which do not affect your credit score. Check your mortgage terms in case they restrict how the rent is used.
Can a limited company or SPV landlord get a rent advance?
Yes. Individual landlords, limited companies and SPVs can apply, and there is no minimum portfolio size or trading history requirement.
What if my tenant stops paying?
The provider's agreement sets out what happens to the remaining balance if rent stops, and this varies. Read that section carefully before signing. If the risk worries you, a loan secured on the property may be the better route.
Lender reviews
Lenders we compare for rent advance for landlords
Independent write-ups of lenders on our panel that offer this type of finance. Smart Funding Solutions is a broker and is not part of any lender listed. See all lender reviews.
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What our clients say
“Simon was fast, kept us updated at all stages and was a real pleasure to work with on our asset finance. I highly recommend this company: excellent service all round.”
“Spoke with Simon, who managed to get me the loan I needed promptly. The whole process was very smooth and was completed within a few days.”
“Getting a business loan can feel like a bit of a minefield, but everything was broken down for me in great detail. Will use again in the future!”
“Simon was a pleasure to deal with and helped us find a business loan that matched our growth goals and future expansion plans.”
“I couldn’t source funding for my business, but the team got in touch within an hour and had it sorted within 24 hours. Fantastic service, and I would definitely use them again.”
Why businesses choose Smart Funding Solutions
- Access to 300+ lenders
- Personal broker support
- No obligation discussion
- Free to enquire