Square capital Alternatives

This guide lists five UK focused alternatives to Square capital, so buyers can compare speed, eligibility, products, and pricing before applying.

Quick Compare:

1. Funding Circle

Funding Circle focuses on peer-to-peer lending for UK businesses. It offers larger loans with competitive interest rates and reasonable terms. Typical suitability includes businesses seeking finance for expansion or larger projects, with options for fixed interest rates and quick funding via brokered or direct channels.

Loan and pricing details

• Min amount: £10,000
• Max amount: £750,000
• APR min: 6.9%
• APR max: Unknown
• Loan durations: 6 months to 5 years

Funding range note: from £10,000 to £750,000 typically

Speed: typically within 1 week

Interest rate notes: Fixed rates starting from 6.9% per annum.

Eligibility

• Min trading months: 12
• Min monthly turnover: £1,000
• Credit flexibility: Moderate credit profile required

Personal guarantee: Personal guarantees may be required depending on the loan.

Homeowner advantage: Not specified, but strong personal financials are beneficial.

Services and sectors

• Products: term_loan
• Industries: All sectors

Best for

• Larger funding needs
• Fixed interest rates
• Peer-to-peer lending

Pros

• High loan amounts
• Competitive interest rates

Cons

• Strict eligibility criteria

Sources: https://www.fundingcircle.com/uk/small-business-loans-calculator/ https://www.fundingcircle.com/uk/small-business-loans/

2. iwoca

iwoca provides flexible short-term financing options for UK businesses. It offers fast application processes with funding available quickly, suitable for businesses needing immediate cash flow or working capital. It features collateral-free options, and caters to a wide range of credit profiles, including start-ups and growing companies.

Loan and pricing details

• Min amount: £1,000
• Max amount: £1,000,000
• APR min: Unknown
• APR max: Unknown
• Loan durations: Flexible, 1 month to 12 months and beyond

Funding range note: from £1,000 to £1,000,000 typically

Speed: funding within 24 hours

Interest rate notes: Monthly rates starting from 1.5%, dependent on business risk profile.

Eligibility

• Min trading months: 0
• Min monthly turnover: Unknown
• Credit flexibility: Flexible, suitable for new businesses

Personal guarantee: May not always be required, depending on risk assessment.

Homeowner advantage: Not necessary, but personal financial strength is considered.

Services and sectors

• Products: term_loan, revolving_credit
• Industries: All sectors

Best for

• Small businesses
• Quick funding decisions
• Flexible loan terms

Pros

• Fast funding
• Flexible terms

Cons

• High-interest rates for risky profiles

Sources: https://www.iwoca.co.uk/business-loan-calculator https://www.iwoca.co.uk/finance-explained/business-loan-interest-rates

3. PayPal Working Capital

PayPal Working Capital offers loans based on PayPal sales history, providing an easy funding option with quick access. It is suitable for established PayPal sellers who want flexible repayment options without interest, and it does not require collateral or personal guarantees.

Loan and pricing details

• Min amount: £1,000
• Max amount: £160,000
• APR min: Unknown
• APR max: Unknown
• Loan durations: Approved based on sales, usually up to 18 months

Funding range note: from £1,000 to £160,000 typically

Speed: funds disbursed quickly based on PayPal records

Interest rate notes: No interest is applied; instead, a one-off fee is calculated based on the advance and repayment terms.

Eligibility

• Min trading months: Unknown
• Min monthly turnover: Unknown
• Credit flexibility: Linked to PayPal account performance

Personal guarantee: Not required, based on historical PayPal sales.

Homeowner advantage: Not applicable, success tied to PayPal transactions.

Services and sectors

• Products: merchant_cash_advance
• Industries: E-commerce, Retail

Best for

• PayPal users
• Flexible repayment
• No extra fees

Pros

• No credit check
• Repayment from sales
• Transparent fee structure

Cons

• Only available to PayPal users

Sources: https://www.paypal.com/uk/business/financial-services/working-capital https://wise.com/gb/blog/paypal-working-capital-uk

4. Worldpay Business Finance

Worldpay Business Finance provides cash advances linked to future card sales. It offers a flexible option for businesses with consistent card transaction volume. Suitable for businesses seeking quick access to capital tied to their sales revenue, with varying repayment terms and no fixed interest.

Loan and pricing details

• Min amount: £1,000
• Max amount: £300,000
• APR min: Unknown
• APR max: Unknown
• Loan durations: Repayment terms vary with sales but roughly 3 to 12 months typical

Funding range note: from £1,000 to £300,000 typically

Speed: Quick funding correlated with card transaction processes

Interest rate notes: Repayment is a percentage of sales, not a traditional interest model.

Eligibility

• Min trading months: 3
• Min monthly turnover: £3,000
• Credit flexibility: Moderately flexible, depends on card sales history

Personal guarantee: Typically not needed as repayments are from card sales.

Homeowner advantage: Not required; focus is on transaction history.

Services and sectors

• Products: merchant_cash_advance
• Industries: Retail, Hospitality

Best for

• Businesses with regular card transactions
• Flexible repayments

Pros

• No fixed repayment schedule
• Flexible based on sales

Cons

• Requires consistent card sales

Sources: https://www.worldpay.com/en-GB/products/business-cash-advance https://www.worldpay.com/en/insights/articles/what-is-business-cash-advance

5. Liberis

Liberis concentrates on revenue-based financing for UK small businesses. It offers flexible repayment tied to business revenue, with no hidden costs. Suitable for growing businesses seeking transparent cash-flow lending, often quick to access and without traditional collateral.

Loan and pricing details

• Min amount: £1,000
• Max amount: £1,000,000
• APR min: Unknown
• APR max: Unknown
• Loan durations: Repayment durations are tied to revenue, generally flexible.

Funding range note: from £1,000 to £1,000,000 typically

Speed: Funds can be accessed in as little as an hour

Interest rate notes: Operates on a fixed fee, negating traditional interest charges.

Eligibility

• Min trading months: 6
• Min monthly turnover: Unknown
• Credit flexibility: High flexibility, very revenue-focused

Personal guarantee: Not required; repayments based on revenue percentage.

Homeowner advantage: Not advantageously treated; focus is strongly on business revenue.

Services and sectors

• Products: revenue_based_finance
• Industries: Varied industries with cyclical income

Best for

• Businesses with variable revenues
• Flexible repayment schedules
• Transparent costs

Pros

• No fixed repayments
• Revenue-tied lending

Cons

• Dependence on consistent revenue
• Exact costs can vary

Sources: https://www.liberis.com/ https://www.liberis.com/explore-funding

Final notes

When comparing providers, match loan size, timeline, and sector fit first, then confirm current rates and fees with the finance provider. If one option declines your application, a broker or multi lender panel may still place the deal.

Choosing the right provider depends on your specific purpose. Banks usually offer larger, secured loans for property or asset purchase. Brokers can access a range of lending options including unsecured and alternative finance. Specialist providers focus on niche areas like revenue-based or cash-flow funding. Always review the provider's terms and suitability for your business needs. For further details, consult the Funding Agent website.