AARUBI Finance Ltd
Business finance FAQs
40 practical answers about Merchant Cash Advance, business loan introductions, costs, eligibility and personal risk. Choose from eight topics below.
We provide Merchant Cash Advance services with YouLend and 365 Finance and refer other eligible commercial loan enquiries to selected providers. The provider decides whether to offer funding and on what terms.
Important: 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.
Reviewed on . These are general UK business explanations, not a recommendation to borrow or individual legal, tax or financial advice. Provider requirements vary; the actual agreement matters.
AARUBI’s role and your enquiry
What business finance can AARUBI help with?
Aarubi Finance Ltd provides Merchant Cash Advance services with YouLend and 365 Finance. For other business loans, we may introduce eligible businesses to selected unregulated commercial finance providers. We explain our role and the proposed provider before you proceed. This page also explains alternatives for general information; it does not mean we arrange every product listed.
Is AARUBI the lender or the company providing the money?
Your funding agreement identifies the provider supplying the money and setting the terms. Aarubi Finance Ltd handles Merchant Cash Advance enquiries through its partners and acts as an introducer for other eligible commercial loan enquiries. Do not assume an introduction is a lending decision or approval.
Is Aarubi Finance Ltd FCA authorised?
No. Aarubi Finance Ltd is not authorised or regulated by the Financial Conduct Authority (FCA). We do not provide consumer credit, regulated mortgages or personal financial advice. A partner’s authorisation for a particular activity does not make AARUBI authorised or mean every funding product has the same regulatory protection.
Does asking about finance commit me to taking it?
No. An initial enquiry does not oblige you to accept an offer. Read all application declarations, provider terms and any separate service agreement before accepting or signing. An indicative quotation is not a guarantee that funds will be provided.
How does AARUBI get paid?
We may receive commission or an introducer fee from a provider. Ask what is payable, who pays it, how it is calculated and whether it affects the proposal. Provider names and applicable commission or introducer-fee details will be confirmed before a commercial loan introduction or before you proceed.
Merchant Cash Advance and sales-linked funding
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) provides upfront business funding with collections linked to future sales, commonly card takings. It is often structured as a purchase of future receivables rather than a conventional interest-bearing term loan. The agreement determines the structure, payment obligations and consequences if trading changes.
How is an MCA different from a business loan?
A conventional term loan usually has scheduled repayments and interest over an agreed term. An MCA commonly has an agreed funding fee and collections based on a percentage of eligible sales. Neither is automatically cheaper or more suitable. Compare cash received, total payable, timing, guarantees and the cash left to run the business.
What happens to collections during a quiet month?
With a genuinely sales-linked arrangement, lower eligible sales normally mean lower collections and a longer time to clear the agreed balance. Read the definitions, minimum-payment provisions and any reconciliation process. Tell the provider about significant changes; a quieter month does not automatically cancel the fee or the remaining obligation.
Does “no interest” mean a cash advance is free?
No. A provider may charge a fixed fee instead of interest. Ask for the advance amount, any deductions, the total amount payable and every separate charge in pounds. A fixed fee is still a funding cost, even where the product is not advertised with an Annual Percentage Rate (APR).
Must I change my card machine or payment provider?
Not necessarily. Compatibility depends on your existing payment arrangements and the funder’s collection method. Confirm this before applying, including any settlement-account change, direct debit or payment-routing requirement. Do not cancel or replace a card contract without checking its costs and the funding terms.
Can online sales count, and must I take card payments?
Some funding products assess online sales or broader revenue, while card-based advances depend on eligible card takings. Ask which income streams and payment providers the proposed funder accepts. Do not assume all turnover qualifies or that every cash-only business can obtain an MCA.
Eligibility, applications and credit checks
How much funding could my business receive?
The provider assesses your trading record, eligible sales, existing commitments, funding purpose and ability to meet the agreement. An advertised maximum is not your entitlement. Request only what the business needs and test the effect on cash flow; meeting an initial criterion does not guarantee acceptance.
How long must I have been trading?
There is no single rule across all providers and products. Trading history and minimum turnover requirements differ. Tell us your actual start date and recent sales, including seasonal dips. A new owner should ask whether a previous owner’s trading history can be considered rather than assuming it transfers.
Can I apply with poor credit or after a bank declines me?
A different provider may assess risk differently, but poor credit, arrears or a previous decline can affect availability and terms. Ask why the application failed and correct inaccurate records. Avoid repeated speculative applications or expensive borrowing that the business cannot sustain. No-credit-check or guaranteed-approval claims deserve caution.
Will an enquiry or application affect my credit score?
Ask whether the next stage involves a soft search, a hard search, a business search or checks on directors or guarantors. A quote enquiry and a full application are different stages. Do not assume every broker or provider uses a soft search, or that submitting several applications has no effect.
What documents will I need, and how should I send them?
A provider may request business bank statements, sales or card-processing records, accounts, existing finance details and identity evidence. Requirements vary. AARUBI’s initial enquiry form does not ask for document uploads. Use a verified secure channel if documents are requested later; never send banking passwords, security codes or full card details through our form.
Costs, affordability and comparing offers
Which numbers should I compare before accepting funding?
Compare the usable cash you receive, total payable, payment timing and all fees on the same basis. Include deductions from the advance, separate broker or legal costs, variable-rate assumptions and early-settlement terms. Also check security and guarantees: these are risks, not just price differences.
What is a factor rate, and is it the same as APR?
A factor rate is a multiplier used to express the total payable on some advances. For example, £20,000 multiplied by 1.20 equals £24,000, a £4,000 difference before separate charges. That does not mean 20% APR. An annualised comparison depends on how much cash is received and the timing of every payment.
What is the collection or holdback percentage?
It is the agreed share of eligible sales collected towards the outstanding amount, not the funding fee. If the percentage were 10%, £10,000 of eligible sales would produce £1,000 of collections. That deduction comes from sales, not profit, so rent, stock, wages and tax must still be affordable.
Can I repay early and reduce the cost?
Check the actual early-settlement clause. Some loans reduce future interest but charge an exit fee; a fixed-fee advance may leave the fee unchanged or offer a contractual discount. Ask for a dated settlement figure and an explanation of any rebate, charge or remaining obligation. Do not assume early payment always saves money.
How do I check whether repayments are affordable?
Use a cash-flow forecast that includes stock, wages, rent, VAT and other taxes, existing finance and the proposed collections. Model a quiet period as well as normal trading. Turnover is not spare cash, and a lender’s approval is not proof that the remaining cash will meet your business needs.
Do fixed rates or smaller payments guarantee a cheaper deal?
No. A fixed interest rate offers certainty over that rate, not immunity from every fee or contractual charge. A longer term can reduce regular payments while increasing total cost. Compare the complete cash flows, variable-rate exposure and costs under the same assumptions instead of choosing the lowest monthly figure.
Personal guarantees and business assets
Does an unsecured business loan mean there is no personal risk?
No. A loan without specified asset security may still require a personal guarantee. Read both the finance agreement and any guarantee or indemnity. “Unsecured” does not mean the provider has no enforcement rights, or that a director can never become personally liable.
What is a personal guarantee?
It is a legally binding commitment that can make the guarantor personally liable if the business does not meet specified obligations. Check the trigger, liability cap, interest, costs and whether it covers future facilities. Take independent legal advice before signing; limited-company status does not remove a guarantee you give personally.
If several directors sign, is liability divided equally?
Not necessarily. Joint-and-several wording can allow a claim against one guarantor for the full covered amount, subject to the document’s limits. A limited guarantee must be read carefully: interest and enforcement costs may be treated separately from its headline cap. Do not infer your share from your shareholding.
Could my home be at risk, and is a debenture the same as a guarantee?
Personal assets can be at risk under a guarantee or separately granted personal security, subject to the documents and applicable enforcement process. A company debenture usually creates security over company assets; it is not automatically a charge on a director’s home. Ask a solicitor to distinguish each document and explain the exposure.
Does a guarantee end when I sell the business or repay the loan?
Do not assume it does. Check continuing-security wording, other facilities covered and release conditions. Leaving a directorship or selling shares does not by itself prove release. Ask the provider for written confirmation of discharge or the required release document, and have your adviser check it.
Other UK business finance options
What are term loans, overdrafts and revolving credit?
A term loan provides a sum repaid over an agreed period. An overdraft or revolving facility permits borrowing within a limit, subject to its terms. Check review dates, drawdown and unused-facility fees, rate changes and whether the limit can be reduced or repayment demanded. Flexibility does not make a facility permanent.
What is invoice finance, and how do factoring and discounting differ?
Invoice finance releases cash against eligible unpaid invoices. With factoring, the provider commonly handles collections; with invoice discounting, the business usually retains that task. Ask about customer notification, service and funding fees, disputed invoices and who bears non-payment risk. “Non-recourse” protection does not necessarily cover every unpaid invoice.
How do hire purchase and equipment leasing differ?
Hire purchase usually spreads the cost of acquiring an asset, with ownership transferring after the agreement’s final requirements are met. Leasing usually gives a right to use it without automatic ownership. Check deposits, maintenance, insurance, end-of-term options, tax treatment and repossession risk. Ask whether a specialist introduction is available; we do not promise access to every product.
Are government-backed loans or grants free money?
No. Under the Growth Guarantee Scheme, the government guarantee supports the lender and the borrower remains liable for the debt. Grants have eligibility, permitted-use and other conditions and may require repayment if those conditions are breached. Check the official scheme and accredited provider rather than assuming approval or debt forgiveness.
Can a start-up or sole trader use AARUBI for every type of loan?
No. Product eligibility and the regulatory position depend on the borrower and agreement. Some sole-trader and small-partnership borrowing is regulated consumer credit, which AARUBI does not provide. The official Start Up Loans scheme offers personal loans for business purposes; it is an external option to explore directly, not an AARUBI product.
Managing finance and changes to your business
How quickly can funding arrive?
Timings depend on a complete application, verification, provider assessment, signed documents and any payment setup. An advertised fast decision is not guaranteed cleared funds. Do not commit to a purchase or supplier deadline until the provider has confirmed the conditions and expected transfer.
Can I top up, refinance or take another advance?
Possibly, subject to a fresh assessment and existing contract restrictions. Check whether old balances or fees are paid from the new facility and calculate the net extra cash and total new cost. Disclose existing borrowing. Several simultaneous deductions can make an apparently affordable proposal difficult to sustain.
What should I do if I may miss a payment or stop trading?
Contact the provider early with realistic cash-flow information and request its support options in writing. Do not assume stopping trading ends the agreement or guarantee. Avoid borrowing simply to hide unaffordable arrears. Seek independent debt advice and, where insolvency may be involved, appropriate professional advice.
Can moving premises, changing ownership or switching payment providers affect funding?
Yes. Your agreement may require notice or consent, continued access to sales information or a particular collection route. Speak to the provider before changing legal entity, selling, moving or redirecting takings. Get written confirmation of any transfer, settlement or release rather than assuming the agreement follows the business automatically.
Regulation, complaints and avoiding scams
Are all UK business loans regulated by the FCA?
No. Much limited-company and other commercial lending sits outside the FCA’s consumer-credit remit; some lending to individuals, sole traders and small partnerships falls within it. Check the specific borrower, product and permissions. FCA authorisation for payment services alone is not proof that a cash advance has regulated-loan protections.
How can I spot a funding scam?
Be wary of pressure, unsolicited guaranteed approvals, copied firm identities and unexpected payments to release funds. Verify the provider independently and check applicable FCA permissions using official contact details. A genuine commercial fee is not automatically a scam, but its purpose, recipient and refund terms should be clear before you pay.
How do I complain about AARUBI or a funding provider?
For an Aarubi Finance Ltd enquiry or introduction, contact aarubifs@gmail.com with the reference, what happened and the outcome requested. Complain separately to the named provider about its funding decision, agreement, collections or service. Keep copies and ask for a complaint reference and response timetable. Do not include bank passwords or security codes.
Can I take a business finance complaint to the Financial Ombudsman?
It depends on the complainant, provider, activity and the rules of the service. Small-business status alone does not guarantee coverage, and an unregulated agreement does not let you decide eligibility from its label alone. Complain to the firm first, then check the Ombudsman’s eligibility and referral deadlines. AARUBI does not promise Ombudsman coverage for its introductions.
A cash-advance example in pounds
Illustration only, not an offer or typical price: £20,000 received plus a £4,000 fixed fee gives £24,000 total payable. The factor is 1.20. A separate 10% collection percentage determines how much of eligible sales goes towards that balance.
| Eligible sales | Collected towards balance | Sales left before business costs |
|---|---|---|
| £10,000 | £1,000 | £9,000 |
| £20,000 | £2,000 | £18,000 |
| £30,000 | £3,000 | £27,000 |
The amount left is not profit: stock, wages, rent, tax and other commitments still need paying. These are monthly totals for illustration, not a promised collection schedule. Actual deductions stop or adjust when the remaining amount has been paid under the agreement.
Lower sales can slow repayment without reducing the fixed fee. Faster repayment does not automatically earn a discount. The 1.20 factor is not 20% APR, and the 10% collection rate is not the cost of finance.
Related finance guides and tools
Want to discuss a business funding enquiry?
Tell us your funding purpose, trading history and recent turnover. We will explain whether we can help and what the next step involves. No approval or particular terms are guaranteed.
Aarubi Finance Ltd is registered in England and Wales under company number 16422403. Registered office: 66 The Kent, Rugby, CV21 4NQ.