365 Finance review: merchant cash advance for card-taking businesses

365 Finance is a UK provider of revenue-based finance, better known as a merchant cash advance, for businesses that take card payments. Founded in 2012, it advances a lump sum and is repaid automatically through a small percentage of each card transaction, so repayments rise and fall with your sales. Smart Funding Solutions is an independent broker and is not part of 365 Finance, so we can set its offer against other card-linked and unsecured options. You can read more on 365 Finance's own website.

01About 365 Finance

365 Finance says it was set up in 2012 to give small businesses an alternative to traditional bank lending. Its model is to purchase a portion of a business's future card revenue in exchange for funding today. The trading company is 365 Business Finance Limited, and the business has since expanded into Ireland as 365 Finance Ireland.

The company highlights a dedicated relationship manager for each customer and says its decisions are not based solely on credit history. Its case studies feature high street and online retailers, hospitality businesses and service businesses.

365 Finance is one of the lenders on our panel for merchant cash advance funding.

02What 365 Finance funds

365 Finance markets its main product as revenue-based finance. Its site also refers to unsecured business loans and quick loans for limited companies, but the card-linked advance is what it is known for.

Product	What it is for	Typical size	How it is repaid
Revenue-based finance (merchant cash advance)	Working capital: stock, refurbishment, equipment, marketing, a seasonal gap	£10,000 to £500,000	A fixed percentage of each card sale until the agreed total is repaid, so the time taken depends on your sales

The key difference from a loan is that there is no fixed monthly payment. 365 Finance connects to your card terminal and takes its share automatically from daily card takings. In a quiet week you pay less; in a busy week you pay more. The total you repay is agreed at the start as one all-inclusive cost, which 365 Finance says never changes.

Our page on revenue-based finance explains how this model compares with other sales-linked products, and the merchant cash advance calculator lets you test how repayments might work against your own takings.

03Who 365 Finance suits (and who it may not)

A card-linked advance from 365 Finance tends to suit:

• Restaurants, pubs, cafes, hotels and other hospitality businesses with steady card takings.
• Retailers, on the high street or online, that take most payments by card.
• Service businesses such as salons and gyms where customers pay by card.
• Seasonal businesses that would struggle with a fixed monthly payment in quieter months.
• Owners who do not want to offer property as security.

It is a poorer fit for businesses paid mainly by invoice, bank transfer or cash, for those with thin margins, and for anyone who could qualify for a cheaper fixed-term loan. Larger advances are more likely to be offered to directors who own their homes, and a personal guarantee is typical for this kind of funding.

The key difference from a loan is that there is no fixed monthly payment.

04What 365 Finance looks at

Because repayments come from card sales, the most important evidence is your card processing history. For a merchant cash advance, providers typically ask for:

• Several months of card merchant statements showing monthly takings.
• Recent business bank statements.
• Basic business and owner details, including how long you have traded.
• Details of any existing advances or loans being repaid from the same sales.

365 Finance says no security or business plan is needed, and that funds can be in your account in as little as 24 hours once approved.

05Pros and cons

Pros

• Repayments track card sales, easing pressure in quiet periods.
• No property security or business plan required.
• Fixed total cost agreed upfront.
• Fast funding, with a relationship manager for each customer.
• Established provider, trading since 2012.

Cons

• Usually costs more than a conventional loan for businesses with strong credit.
• Paying back quickly does not reduce the agreed total, so the effective cost can be high.
• Only works for businesses with meaningful card takings.
• A share of every card sale goes to repayments, reducing daily cash.

Before signing any sales-linked agreement, read our guide to merchant cash advance pros and cons.

06Applying through a broker vs going direct

You can apply to 365 Finance directly. Comparing first matters because merchant cash advance offers vary between providers in the total repayable and the share of sales taken, and because some businesses are better served by a term loan. We set 365 Finance alongside other card-linked providers and unsecured lenders so you can see the full picture.

We search the market, present your case and manage one application. It is free to enquire; any broker fee is disclosed separately before you proceed. Use Instant Quotes to compare lenders in minutes.

07Alternatives to 365 Finance

• Liberty Finance: another established card-linked funding provider, worth comparing on the share of sales taken.
• Capify: offers both merchant cash advances and fixed-term loans, useful if you want both options quoted.
• YouLend: sales-linked funding often offered through payment and ecommerce platforms.