SAPI review: payment linked merchant funding for UK businesses

SAPI is a London headquartered fintech that provides payment linked financing: a lump sum up front, repaid automatically from a share of the card and online payments a business takes. It works largely through payment companies, marketplaces and other platforms, so many business owners first meet SAPI as an offer inside a system they already use. Smart Funding Solutions is an independent broker and is not part of SAPI. SAPI is one of the lenders on our panel, so we can compare its offer with other sales linked and unsecured options.

01About SAPI

SAPI describes its mission as widening access to fair, flexible capital through payment linked financing, delivered with partners, for business owners that banks often overlook. Its head office is in London, with a further operation in Hanoi, and it says it supports businesses in the UK, the EU and the US. The company has reported advancing more than £50 million to small businesses and points to a high proportion of returning customers.

As well as funding merchants, SAPI provides liquidity products to payment companies themselves, such as instant payouts for their business clients and pre-funding of settlements. For a UK business owner, though, the relevant product is its merchant financing.

02What SAPI funds

SAPI offers one core product to UK businesses. It behaves like a merchant cash advance: you receive an advance, and repayments are taken at source as a fixed share of your sales until the agreed total is cleared.

The pricing itself depends on your sales volume, processing history and credit profile, so you only know the true cost once you have an offer. Because the fee is fixed, paying back faster in a busy period does not reduce what you owe. Our merchant cash advance calculator helps you see how long an advance might take to clear at different sales levels.

The minimum monthly payment is an important detail. Many people choose sales linked funding because repayments flex with trade, but with SAPI there is a floor. If takings drop sharply for several months, you still need to meet one twelfth of the advance each month.

03Who SAPI suits (and who it may not)

SAPI is built for limited companies that take a steady flow of card or online payments. It suits retailers, hospitality businesses and ecommerce sellers who want working capital without putting up property, and who value repayments that track their takings.

• Good fit: companies trading for at least 12 months with consistent card or platform sales.
• Good fit: owners who want a quick online application linked to existing trading data.
• Less likely to fit: businesses paid mainly by invoice or bank transfer outside a supported platform.
• Less likely to fit: very new businesses, sole traders, or companies already repaying several other advances.
• Think carefully: businesses with thin margins, because a share of every sale goes to repayment until the advance is cleared.

04What SAPI looks at

SAPI publishes a clear set of eligibility points on its website. In summary:

• At least 12 months of trading, verified through Companies House.
• At least £10,000 of sales in the last quarter on your main platform.
• A company incorporated in the UK, with a UK settlement bank account.
• At least one personal guarantee from a director who lives in the UK.
• Identity and proof of address documents, and Open Banking access.

It also says it looks at how often and how consistently you take payments, your mix of new and returning customers, chargebacks, failed debits, the credit history of the business and its directors, and whether you already hold advances elsewhere. If you do, our guide to refinancing a merchant cash advance explains the options.

05Pros and cons

Pros

• Repayments follow your sales rather than a fixed monthly amount.
• No property security required.
• Clear, published eligibility criteria.
• No early repayment fee, according to SAPI.
• Advances up to £500,000 for larger card based businesses.

Cons

• A fixed fee means clearing the advance early does not cut the cost.
• A monthly minimum payment applies even in slow months.
• Must be repaid within 12 months, which can strain cash flow on larger advances.
• A director's personal guarantee is required.
• Sales linked funding is often more expensive than a term loan for businesses that qualify for one.

06Applying through a broker vs going direct

If SAPI's offer appears in your payment dashboard, it is tempting to accept it on the spot. Before you do, it is worth checking whether a cheaper fixed term loan, a revolving facility or another sales linked provider would cost less in total. Our article on merchant cash advance pros and cons walks through the trade-offs.

We search the market for you, present your trading figures to the lenders most likely to fit, and keep it to one application. It is free to enquire; any broker fee is disclosed separately before you proceed. To see your options quickly, use our Instant Quotes tool to compare lenders in minutes.

07Alternatives to SAPI

• 365 Finance is another lender on our panel worth asking for a second quote if you take regular card payments.
• MyCashline, now trading as MCL Finance, offers merchant cash advances and short-term unsecured funding, worth comparing where SAPI's platform requirements do not suit.
• Our YouLend guide covers a similar embedded finance model, useful if you have offers from both.

You can read more on SAPI's own site at sapi.com. Any firm's details can be checked on the FCA Register.