Funding information: Aarubi Finance Ltd is not authorised or regulated by the Financial Conduct Authority. We provide Merchant Cash Advance services with YouLend and 365 Finance and may introduce eligible businesses to selected unregulated commercial finance providers. We do not provide consumer credit, regulated mortgages or personal financial advice. Eligibility and terms apply. This article is general information, not individual financial, legal or tax advice.
Choosing business finance starts with two questions: what will the money pay for, and what cash will be available to meet the agreement? The product with the smallest regular payment is not necessarily the cheapest or safest.
For short answers before comparing offers, see our business finance FAQs: funding options.
Compare the structure, not just the headline rate
| Option | How it works | What to check |
|---|---|---|
| Term loan | A sum borrowed and repaid over an agreed period | Fixed or variable interest, total payable, fees and guarantees |
| Merchant Cash Advance | Funding with collections linked to eligible sales | Fixed fee, collection percentage, eligible revenue and contractual obligations |
| Invoice finance | Funding against eligible unpaid customer invoices | Fees, customer payment delays, exclusions and non-payment risk |
| Hire purchase or leasing | Spreads equipment acquisition or use costs | Ownership, deposit, maintenance, final payments and security |
This is an overview, not a list of products AARUBI promises to arrange. Provider criteria and the business's circumstances determine availability.
Business loans and cash-flow flexibility
A term loan can fund a defined business expense, but repayment dates may not match when customers pay. Ask whether interest is fixed or variable and whether early settlement changes the cost. An unsecured loan can still require a personal guarantee. The British Business Bank's loan guide explains these distinctions.
An overdraft or revolving facility offers a different drawdown structure. Before relying on it for long-term spending, ask about reviews, renewal, changes to the limit and when repayment can be demanded.
Merchant Cash Advance
An MCA commonly combines an agreed fee with collections from a share of eligible sales. 365 Finance's provider FAQs explain its sales-linked model. Other agreements may differ.
Lower sales can slow collections without reducing the fixed fee. Faster collections do not automatically earn a discount. The deduction comes from sales, not profit, so stock, wages and tax still need covering. Read our cash-advance cost comparison before treating flexibility as affordability.
Invoice finance
Factoring commonly includes customer collections; invoice discounting usually leaves that work with the business. Funding depends on eligible invoices and provider terms, not simply total turnover. The British Business Bank explains invoice finance.
Ask what happens if a customer disputes or fails to pay an invoice. Our invoice finance fees guide provides questions for comparing quotations.
Equipment finance
Hire purchase normally leads to ownership after the final contractual requirements are met; leasing does not automatically do so. Compare maintenance responsibilities, end-of-term options and the consequences of missed payments. See the British Business Bank's leasing and hire-purchase guide.
Do not assume every payment is tax-deductible in the same way. Ask your accountant about the particular agreement.
Before choosing
- Write down the amount actually needed and its purpose.
- Forecast cash after existing commitments, including a quiet trading period.
- Compare usable cash received, total payable and payment timing.
- Read security, guarantee, default and exit clauses.
- Check who supplies the funds, who receives commission and what regulatory protection applies.
AARUBI handles MCA enquiries with its partners and may introduce other eligible commercial enquiries to selected providers. It is not the lender or a whole-market comparison service. Start with the finance FAQs or tell us about your funding enquiry.
