UK SME finance — types and eligibility
UK small-business finance comes in many shapes. The right one for a given business depends on what the money is for, how the business trades, how much it turns over, what security is available and how quickly funds are needed. This library covers the 10 core finance categories we track, plus a separate section on marketplace and broker routes. Each page explains how the product works in plain English, who it typically suits, the eligibility signals lenders look for, the common reasons applications are declined, honest watch-outs on cost and regret risk, and the lenders we have mapped in that category. Where helpful, we link across to related use cases, sector guides and educational explainers so the picture is easy to assemble before you talk to anyone.
The 10 core UK SME finance types
Check eligibilityMerchant Cash Advance
Cash advance repaid as a share of card/POS/platform sales.
Revenue-Based Finance
Growth capital repaid flexibly against future revenue.
Unsecured Business Loan
Term loan or credit line repaid through fixed instalments.
Secured Business Loan
Larger bespoke cashflow or asset-backed debt.
Invoice Finance
Funding advanced against unpaid B2B invoices.
Asset Finance
Finance to buy/refinance equipment, vehicles or machinery.
Bridging Finance
Short-term property-backed finance.
Commercial Mortgage
Long-term commercial property purchase/refinance funding.
Islamic Business Finance
Sharia-compliant SME or property finance.
Business Credit Card
Revolving credit/charge card for expenses and short-term spend.
Side-by-side comparison
A neutral snapshot of typical amounts, speed and security profile across the main UK SME finance categories. These are general ranges — individual lender criteria vary and final terms are subject to underwriting.
| Category | Best for | Typical amount range | Speed | Security profile |
|---|---|---|---|---|
| Merchant Cash Advance | Card-taking retail, hospitality and online merchants needing flexible working capital. | £500 to £1m, with most facilities sitting between £5k and £150k. | Often same-day to 48 hours where payment data integration exists. | Unsecured against company assets; director personal guarantee is the norm at SME ticket sizes. |
| Revenue-Based Finance | E-commerce, SaaS and digital-first businesses scaling stock or marketing. | £10k to several million, with most facilities between £25k and £1m. | Often 24-72 hours from data connection to offer. | Usually unsecured at SME ticket sizes; personal guarantees vary by lender. |
| Unsecured Business Loan | Established SMEs with steady turnover needing flexible-purpose capital. | £1k to £500k for most SMEs, up to £1m with select lenders. | Often 24-72 hours; same-day for smaller automated decisions. | No charge over property/assets; personal guarantees common. |
| Secured Business Loan | Established SMEs and lower-mid-market businesses borrowing £250k+. | £250k to several million; some specialists fund £5m+. | Typically 4-12 weeks including valuations and legal work. | Charge over property, debenture or specific asset; usually PG-supported. |
| Invoice Finance | B2B SMEs invoicing on 30-120 day credit terms with quality debtors. | Up to 90% of eligible invoice value; facilities scale from £10k to several million. | Initial setup 1-3 weeks; ongoing draws often same-day. | Assignment of receivables; debenture often required; PGs common at SME ticket sizes. |
| Asset Finance | Businesses buying or refinancing vehicles, plant, machinery or IT. | £1k to £5m+; most SME facilities sit between £10k and £500k. | Often 24-72 hours for standard assets; specialist deals 1-3 weeks. | Asset itself acts as security; PG common at SME ticket sizes. |
| Bridging Finance | Property investors and businesses with a clear short-term funding need and exit. | £25k to £25m+, with most SME and investor cases in the £100k-£2m range. | Often 1-4 weeks; very fast cases can complete inside 7-10 days. | First or second charge over property; PGs and additional security common on complex deals. |
| Commercial Mortgage | Owner-occupiers buying premises and investors building a commercial portfolio. | £75k to £25m+, with most SME cases between £150k and £2m. | Typically 6-12 weeks from application to completion. | First legal charge over the commercial property; PG common on owner-occupier deals. |
| Islamic Business Finance | Faith-aligned SMEs and property investors seeking Sharia-compliant funding. | £100k to £20m+, depending on product and lender. | Similar to conventional finance — typically 4-12 weeks for property cases. | Asset-backed structures — property charge for Ijara/Murabaha; PGs may apply. |
| Business Credit Card | SMEs needing flexible everyday spend, rewards and cashflow smoothing. | £500 to £100k limits; charge cards can offer higher. | Often same-day or next-day decisions for standard SME products. | Unsecured; personal guarantee common. |
Ranges are indicative across the lenders we track. Individual amounts depend on trading history, affordability, security and underwriting outcome.
How to choose the right finance type
A practical sequence for narrowing down. Start with the use of funds, then the time horizon, then the available security, then the trading evidence. Most mismatches between SMEs and lenders happen when one of these is at odds with the chosen product.
- What is the money for? Stock and marketing fit revenue-based finance or merchant cash advance. A vehicle or machine fits asset finance. Premises fit commercial mortgages or bridging. General working capital fits an unsecured loan or invoice finance.
- How long do you need it? Days or months point to bridging or short-term working capital. Years point to term loans, asset finance or commercial mortgages.
- What security can you offer? Property opens commercial mortgages and bridging. Unpaid invoices open invoice finance. Tangible assets open asset finance. None of those steer toward unsecured options.
- How is the business trading? Card or platform revenue is ideal for merchant cash advance and revenue-based finance. Steady B2B invoicing suits invoice finance. Strong profitable accounts open the widest unsecured market.
The eligibility checker walks through these questions and ranks the categories against the business profile, with explanations of why each route may or may not fit. It is not a credit application — no data is shared with lenders unless you choose to act.
Alternatives and broker routes
Some businesses want a wider sweep across multiple lenders rather than a direct product. Marketplaces and broker platforms can help in that case, though each downstream lender still applies its own criteria.
Not sure which finance type fits?
Answer a few short questions about trading history, turnover and the use of funds. We will rank finance types against the profile, explain the reasons behind each fit and surface the lenders most likely to look at the case.
Important — educational guidance only
- Not regulated by the FCA and not a credit broker.
- Not financial, legal or tax advice.
- Not a loan offer and not a guarantee of approval.
- Subject to lender underwriting — criteria can change.
Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.