YouLend vs Uncapped: Which Lender Is Better for UK Business Finance?

If you are comparing flexible, sales-linked business funding, YouLend and Uncapped often end up on the same shortlist, especially for e-commerce, retail, and other high-volume trading businesses. Both position themselves as alternatives to traditional term loans, with repayments designed to move with trading performance rather than staying fixed each month. This guide is for UK SMEs that want a practical, verifiable comparison of how the two models work, what costs can look like in real life, and where the trade-offs usually sit.

Products and terms at a glance

Both YouLend and Uncapped are commonly discussed alongside merchant cash advances and other revenue-linked funding. Even where a provider uses the term “loan”, the key practical detail is the repayment mechanism and how the cost is expressed.

YouLend overview

YouLend describes its merchant funding as being repaid by taking a fixed percentage of daily sales, typically 5% to 20%, and it states that you pay one flat fee agreed up front rather than interest. Operationally, that is closer to a revenue-based repayment structure than a traditional fixed-instalment term loan.

Because repayments are linked to sales, there is usually no single “typical term” you can assume from the headline description alone, the time to fully repay depends on your sales volume and the agreed percentage taken.

Pros

• Repayments can flex with revenue because YouLend states it collects a fixed percentage of daily sales, which can reduce pressure in slower weeks compared with a fixed monthly instalment.
• Upfront cost visibility may be clearer than variable interest if your offer is structured as a single fixed fee, as described on YouLend’s merchant funding page.
• The model can be convenient where repayments can be collected automatically as sales occur, which YouLend highlights as taking a percentage of sales rather than a manual monthly payment.

Cons

• Because pricing is stated as a flat fee rather than APR, comparing to bank loans or unsecured business loans can be less intuitive, you may need to convert to effective annualised cost to compare properly.
• A repayment percentage taken from sales can affect day-to-day cash flow, particularly for low-margin businesses, even if the percentage is “small”.
• Eligibility and offer sizes can vary significantly by sales channel and trading data, and YouLend’s public pages do not provide a single, universal UK rate card that applies to every business.

Uncapped overview

Uncapped positions itself as “fast, flexible funding for online businesses” on its UK site. It describes a fixed-fee approach on its product pages, including stating that for one of its options you pay a fixed fee that is not tied to revenues and that you can set manageable daily or weekly repayments. It also markets a revolving line of credit designed for repeat access, where you draw when needed and repay over time.

Pros

• If you prefer repayment planning, Uncapped explicitly describes being able to set daily or weekly repayments on its fixed rate financing page.
• Uncapped states it uses a fixed fee model on that same page, which may make total cost easier to understand than compounding interest, depending on the offer.
• The availability of a line of credit can suit businesses that need repeat draws rather than one-off funding, provided you meet eligibility and underwriting criteria.

Cons

• A repayment schedule that is not tied to revenue can be harder to carry through a downturn, even if the fee is fixed, because the payment amount can remain due regardless of sales levels.
• Uncapped’s pricing can vary by product and risk, and while it provides examples of fee structures, you should still confirm what your specific offer includes before comparing.
• “Line of credit” structures can introduce behavioural risk, it can be tempting to draw repeatedly without a clear plan for repayment, especially when cash flow is tight.

Costs and repayments in practice

These lenders generally do not behave like conventional unsecured business loans where you have a fixed term, a stated interest rate, and a consistent monthly repayment amount. In practice, you are usually comparing two different pricing and repayment languages:

• Fixed fee or factor style pricing, where a single fee or multiplier determines total payback, and the repayment method determines how quickly you clear it.
• Revenue-linked repayment, where the repayment amount is a share of sales rather than a fixed figure.

If you want a quick way to stress test affordability, it can help to run a simple repayment estimate in a tool like Funding Agent’s business loan calculator, then adjust the assumptions to reflect daily, weekly, or revenue-share repayments.

Worked example 1, YouLend (illustrative)

What we can verify: YouLend states repayment is a fixed percentage of daily sales, typically 5% to 20%, and that you pay one flat fee agreed up front. It does not publish a single universal fee table on that page, so the numbers below are illustrative and should be replaced with your actual offer terms.

Assumptions (illustrative, not a quote): funding amount £50,000, fixed fee 12% of funding (so total payback £56,000), repayment percentage 10% of daily sales. Average card or online sales £30,000 per month (roughly £1,000 per day).

• Daily repayment at 10% of £1,000 sales, about £100 per day.
• Time to repay £56,000 at £100 per day, about 560 days, around 18 to 19 months, assuming steady sales and no interruptions.
• If sales drop to £20,000 per month, daily average about £667, repayment about £67 per day, extending time to repay proportionally.

What to take from this: a revenue-linked structure can protect cash flow in slow periods, but it can also mean your payback period stretches when sales dip. That is why comparing total payback and running a few sales scenarios is usually more informative than comparing a single headline fee.

Worked example 2, Uncapped fixed rate financing (illustrative)

What we can verify: Uncapped says on its fixed rate financing page that you pay a fixed fee not tied to revenues and can set manageable daily or weekly repayments. Its FAQ also states that for its term loans it charges a fixed fee starting as low as 0.7% per month, which suggests fees vary by risk and product.

Assumptions (illustrative, not a quote): funding amount £50,000, fixed fee equivalent of 1.0% per month for 12 months (so fee £6,000), total payback £56,000, repayments set weekly over 52 weeks.

• Weekly repayment, £56,000 divided by 52, about £1,077 per week.
• Because the repayment is set, the weekly amount stays the same even if revenue fluctuates, unless your contract allows adjustment.
• If your gross margin is 30%, you would want to check that weekly repayment is comfortably covered by average weekly gross profit after other overheads.

What to take from this: a set repayment schedule can make budgeting easier, but it can be less forgiving if sales become volatile. When Uncapped is pitched as being “on your terms”, the practical question is how flexible the repayment plan is once it is agreed, and what happens if performance shifts materially.

If you want to sanity-check how different cost expressions translate, Funding Agent’s explainer on factor rate vs APR is a useful way to think about total payback versus annualised cost, particularly when one lender quotes fixed fees and another quotes sales-linked repayments.

Speed and service

Both lenders are generally considered “fast” compared to traditional bank lending, but speed is not just about the lender, it is also about how quickly you can provide data and complete checks.

YouLend speed factors

YouLend’s merchant page focuses more on automated, sales-linked repayment and the idea of receiving funds quickly, including stating that you can receive funds quickly as part of its merchant proposition. In practice, expect speed to be influenced by how you apply, many YouLend offers are presented through embedded finance partners, and the quality of the connected sales data can affect underwriting time.

Uncapped speed factors

Uncapped’s UK site positions itself around fast, flexible funding for online businesses on its UK homepage. While the homepage is not a service-level guarantee, it signals a streamlined process where data access is a core part of underwriting. Speed can still be affected by the complexity of your corporate structure, the number of sales channels you operate, and whether additional documentation is requested.

For either lender, the most common causes of delay are missing documentation, mismatched bank statements, incomplete ownership information, or revenue volatility that requires manual review. If timing is critical, it can help to have your bank statements, management accounts, and platform access details ready before you start.

Who each lender suits

The best fit often comes down to whether you prefer repayments to flex with trading, or whether you want a set repayment schedule and potentially repeat access to capital.

Scenarios where YouLend may suit

• Seasonal or volatile sales: If you have peaks and troughs, a structure where repayments are a fixed percentage of daily sales can reduce the risk of a fixed payment becoming unmanageable in quieter months.
• High card or online sales volume: Revenue-linked repayments are easiest to operationalise where sales are trackable and frequent, because collections can happen in small amounts rather than large monthly debits.
• You want a single total payback figure: YouLend states it charges one flat fee agreed up front, so you can anchor comparisons on total payback, then model how long repayment might take under different sales outcomes.

Scenarios where Uncapped may suit

• You want predictable budgeting: If you prefer to plan around set payment amounts, Uncapped’s fixed rate financing describes being able to set daily or weekly repayments and paying a fixed fee not tied to revenues.
• You want repeat access: If you anticipate ongoing working capital needs, a revolving line of credit can be a better fit than reapplying each time, assuming you are comfortable managing utilisation and repayments.
• Your revenue is strong but uneven by channel: If your sales data is fragmented, you may prefer a structure where repayment is not mechanically tied to one payment rail, although eligibility will still depend on Uncapped’s underwriting.

How to apply

Application journeys evolve, so treat the steps below as a typical outline based on each lender’s own published descriptions, and confirm details during your application.

How to apply for YouLend

1. Start through YouLend’s merchant flow, for example via the merchant business funding page, or through a partner platform where YouLend is embedded.
2. Connect relevant sales channels or provide trading data, because YouLend positions repayment as a percentage of daily sales, which implies sales performance is central to assessment.
3. Review the offer showing the fixed fee and the agreed repayment percentage, since YouLend describes one flat fee agreed up front and a typical repayment sweep range.
4. Complete any required identity and business checks requested during onboarding, and confirm the bank account where funds will land and where collections will be made.

How to apply for Uncapped

1. Choose the product route that matches your need, for example Uncapped’s fixed rate financing or its line of credit.
2. Submit your business and trading details, online lenders typically require access to bank and platform data to assess revenue quality and affordability.
3. Review the fee structure, Uncapped states it uses a fixed fee not tied to revenues for fixed rate financing, and its FAQ notes term loans can have a fixed fee starting as low as 0.7% per month.
4. Set or confirm your repayment schedule where applicable, Uncapped states you can set daily or weekly repayments, then complete the required identity and business verification steps.

Final verdict

Neither lender is universally “better”, the decision is usually about matching repayment behaviour and cost transparency to your cash flow reality.

Choose YouLend if

• You prefer repayments that move with trading, because YouLend states it takes a fixed percentage of daily sales.
• Your business has frequent, trackable daily sales and you are comfortable with an agreed sweep affecting daily cash flow.
• You want a single fixed fee agreed upfront, and you are happy to compare offers using total payback plus scenario modelling.
• You expect uneven months and want the repayment amount to reduce automatically when sales reduce.

Choose Uncapped if

• You want the ability to set daily or weekly repayments and prefer the predictability of a fixed schedule.
• You value a fee that is described as not tied to revenues, so you can see the cost up front and plan around it.
• You may benefit from repeat access to capital via a revolving line of credit, rather than one-off funding.
• You have stable enough cash flow that fixed repayments are unlikely to become a constraint during slower periods.

If you want to compare these options alongside other lenders, or sanity-check affordability with your own numbers, you can start at Funding Agent and request tailored quotes through the form.

Sources

• YouLend, Merchant Business Funding (repayment percentage and flat fee)
• YouLend, Home Merchants (receive funds quickly, fixed fee framing)
• Uncapped UK homepage
• Uncapped, Fixed Rate Financing (fixed fee and daily or weekly repayments)
• Uncapped, Revolving Line of Credit
• Uncapped, Frequently Asked Questions (fee starting as low as 0.7% per month for term loans)
• Funding Agent, Factor rate vs APR explainer