How business funding actually works.
A business receives a lump sum upfront and repays a fixed total through an agreed percentage of its daily card sales. No fixed monthly repayment — if the business trades less, it repays less that day.
- ✓ Lump sum upfront, up to 150% of monthly card sales
- ✓ Repaid as a % of daily card sales, collected automatically
- ✓ Fixed total cost set with a factor rate, agreed upfront
The product at a glance
The funded lump sum can be up to 150% of the business's monthly card turnover.
A percentage of daily card sales is collected. Real YouLend plans go up to 29% — see Lenders.
The total cost is a fixed fee set by a factor rate. It doesn't accrue over time.
Repayments come straight from daily card takings — no manual payments.
Because it's a % of sales, a slower day means a smaller repayment that day.
Funding + fixed fee is agreed upfront and doesn't grow.
Funding vs a traditional loan
| Feature | Business funding | Traditional loan |
|---|---|---|
| Repayment amount | % of daily card sales (flexes with trade) | Fixed monthly instalment |
| Cost basis | Factor rate — fixed total set upfront | Interest — accrues over the term |
| Total cost certainty | Known on day one | Depends on term and rate |
| Slow trading period | Repay less that day | Full instalment still due |
| Collection | Automatic from card takings | Direct debit |
The repayment journey, stage by stage
Using a real YouLend deal from the Lenders tab: a business funded £50,000, repaying a fixed total of £56,000 at 18% of daily card sales.
Repayment plan
Total to repay = funding + fixed fee, agreed and fixed from the start.
£50,000 + £6,000 fee = £56,000 (factor 1.12)Funding provided
The business receives the agreed amount as a single lump sum — typically within 24 hours of approval.
£50,000 lands in the account to put to workRepayment trigger
Repayment begins on the first day the business trades after receiving the funds. If it isn't trading, repayments don't begin until trading resumes.
Closed a week for a refit? Repayment starts when trading restartsRepayment process
Each day, the agreed percentage of card sales is deducted automatically.
At 18%: a £1,000 day repays £180; a £500 day repays £90Continues until settled
Daily repayments continue until the full total is paid. How long it takes depends on card sales.
Keeps going until the £56,000 is clearedWhat is a factor rate?
A simple multiplier that sets the total cost upfront. Funding × factor rate = total repayable — and that number never changes.
Factor rate calculator
Factor rate
A one-off multiplier. £50,000 × 1.2 = £60,000. Pay it off faster or slower — the total is the same.
Interest rate
Charged on the outstanding balance over time. The longer you take, the more accrues — so the total depends on the term.
Repayment simulator
See how the daily % and card sales change what the business repays versus keeps across a trading week.
FAQs
Is this a loan?
How much does it cost?
How are repayments collected?
What if the business has a quiet day?
How much can be funded?
When can funding be renewed?
Quick knowledge test
1. What makes up the total repayment?
2. 365 Finance offers £25,000 at 1.28. What's repayable?
3. On YouLend, the client moves from 29% to 17.5% daily. What happens to the total?
4. A client was declined on YouLend. Who do you try next, and why?
5. How does a factor rate differ from an interest rate?
One-minute summary
- Lump sum upfront, repaid as a fixed % of daily card sales.
- Total = funding + fixed fee (factor rate), known on day one.
- Up to 150% of monthly card sales; UKMC range £5k–£1m.
- YouLend: cheaper fee, higher daily %, tougher checks.
- 365 Finance: higher fee, lower daily %, more risk appetite.
YouLend vs 365 Finance — read the real offers.
Both repay through daily card sales, but they price risk differently. Every number below comes from real offers.
YouLend
Cheaper fee, higher daily %.
- Lower fixed fees — factor 1.12–1.245 in our examples
- Takes a bigger slice of daily card sales (17.5–29%) so it's repaid faster
- More extensive credit history checks — stronger profiles get the best price
- Lets the client trade daily % against fee (see the plan explorer)
365 Finance
Higher fee, lower daily %.
- Accepts more risk and covers it with a higher fee — factor 1.15–1.33 in our examples
- Offers a lower daily card-sales % to make the deal easier to say yes to
- Often the route when a client is declined on YouLend
- Bigger advances get a lower factor (£500k at 1.15 vs £40k at 1.33)
One £70,000 offer, 24 payment plans
This client was offered between £5,140 and £95,000. At £70,000, YouLend showed plans from 29% down to 17.5% of daily sales. The lower the daily %, the higher the fee — because the lender waits longer to get its money back.
Link to the call script: this is exactly what the turnover question — “lower fee or lower daily repayment?” — is about.
YouLend — approved deals
Three completed applications. All funds within an estimated 24 hours.
365 Finance — offers
365 Finance quotes the factor rate directly. Notice the factor falls as the advance grows.
What the numbers tell us
| YouLend | 365 Finance | |
|---|---|---|
| Factor rate seen | 1.12 – 1.245 | 1.15 – 1.33 |
| Fee as % of funding | 12% – 24.3% | 15% – 33% |
| Daily % of card sales | Higher — 17.5% to 29% seen | Lower — their main selling point |
| Credit checks | More extensive | Lighter — risk priced into fee |
| Best for | Strong history, client wants the cheapest total | Declined elsewhere, or client wants a smaller daily deduction |
Which lender should you lead with?
Guide only. Every offer is subject to each lender's eligibility, underwriting and approval.
Callback script
Read it as written. Use the buttons next to a line when the client pushes back or asks a question.
Hey John, it is Albert from Merchant Capital, how are you doing today?
John, we spoke about business funding in the summer, you have mentioned to call you back at the end of the year, is it a good time?
Objections
I don’t have time:
That’s alright, when would be the best time for us to have a quick chat?
I’ve been declined on Youlend:
That’s not a problem, we also work with 365 Finance and majority of our customers that were declined on Youlend get an offer from them.
I don’t do loans:
You’ve mentioned that last time we spoke, and as I explained it’s not a loan, there’s no interest rate. Would you like me to explain how it works?
Can you send me an email:
Sure, is this still the best email to reach you X, or should I send you a quick WhatsApp message?
We didn’t speak before:
Well John, that’s what I have saved on my calendar, the business name is X, right? – if he keeps pushing – John, that’s fine if you’re not interested, I’m not going to waste your time.
We don’t need extra cash, we have enough etc:
Look, I get it, most of my customers don’t want to use their own money, instead, they use the business funding as financial tool, there’s no interest or fixed term, money lands on your account, and you repay fixed % of daily card sales and a service fee on top – does that make sense?
We are not looking for it right now:
That’s absolutely fine, when would be the best time for us to discuss it in the future?
I don’t use Dojo:
That’s not a problem, you’ve been our customer before, so you’re eligible and later I can ask one of my colleagues to get in contact with you and see if we could save you money on card payments.
I don’t do interest (Sharia compliant):
There is no interest, you only pay a service fee.
Amazing, do you have a specific amount in mind you would be looking for?
Do you have any other funding or advances pending at the moment?
Yes: Who with, and roughly what’s left?
And how much do you take card payments a month, what’s the rough turnover?
And what would be more important a lower fee or a lower daily repayment?
Client questions
How does repayment work:
In terms of repayment plan, we offer from 5-25% of daily repayment percentage. Most of my customers usually go for 10% as a preferable option. However, obviously it’s up to you and we will try to match your expectations.
What’s the interest?
There is no interest rate, only a fixed fee which usually ranges from 10-20%.
I’ve just finished/finishing my current loan…
That’s perfect, we’ve recently negotiated better agreement terms with Youlend and we’re now able to provide up to 150% of monthly card sales instead of 100%.
Do you know when your funding is due to be repaid or should I double check with my team?
How much can I get?
That really depends on your monthly card sales and general financial health of the business, but on average we can do up to 120, 150% of what the card sales are.
Of course, we could definitely do that, we will just need to reconfirm basic information, your date of birth, home address and 6 latest company bank statements, should I send you a message on WhatsApp or a quick email?
If email confirm email in system.
Objection
You already have those details.
Due to GDPR we must confirm it first, so we can generate offers to you, does that make sense?
or
Yeah, that’s right, but it’s under GDPR so unless you confirm it, we can’t use it.
Perfect, my colleague will be in contact to discuss the offer in more detail, when would be the best time for him to contact you?
In short how business funding works:
We provide you with up to 150% of your monthly card sales for any business expenses, there’s no interest rate, only fixed fee that’s based on factor rate. Repayment is automatically taken from your card terminals, and you can choose how much you repay daily, and that ranges from 5 to 25%.