SMEs prioritise funding that eases payment anxiety
Written by Team 365 Finance
Soho-based 365 Finance, an award-winning lender specialising in revenue-based finance, has started the year with a customer survey revealing that SMEs across the UK opt for this type of funding because it acts as a risk-sharing financing option, reducing payment anxiety.
Revenue-based finance is increasingly popular with entrepreneurs seeking business growth, this is due to repayments being a reflection of sales performance, meaning that when revenue slows the payment amounts reduce – offering greater flexibility in terms of cash flow, along with peace of mind for business owners.
SMEs confirmed, via 365 Finance’s 2026 Q1 customer survey, that the main reasons for applying for revenue-based funding are for cash flow support purposes, purchasing stock or inventory, and for renovations or improvements.
Emergency and unexpected repairs, then equipment and machinery purchases came in as the fourth and fifth reasons businesses seek finance, with urgent bills also mentioned by survey respondents.
The most important factors SMEs consider when taking finance are how much it will cost overall, the funding amount available to them, the speed of funding, the ease of the application process, the flexibility of repayments, and the level of ongoing customer service.
Warren Abbey, CEO at 365 Finance, said, “As a highly ethical lender, we take pride in our strong customer relations and responsible underwriting processes, assisting businesses with their long-term plans for stability and growth. We continually ensure that SMEs get the financial support they need, but more importantly the right funding to help them flourish.
“The pain point for SMEs often isn’t the cost of finance, but their payment anxiety – which is usually the main factor contributing to when they reject funding. Revenue-based finance offers a solution to payment anxiety due to how payments are taken, never overstretching the SME.”
Businesses based anywhere in the UK can apply for funding of £10,000 to £500,000 with 365 Finance, at a time when the lender is offering record speeds in terms of funding approvals.