Revolut business loan: what you need to know and alternative options for SMEs

The rise of digital banks has created a range of new options for businesses when it comes to banking, saving and managing their finances. However, not all of the challenger institutions offer lending services. While Revolut has recently received their banking licence, it does not currently offer dedicated small business loans in the UK.

Revolut’s range of financial products—including multi-currency accounts, international payments, and spending analytics—can be invaluable for small to medium-sized enterprises (SMEs) looking to streamline their finances.

What is a Revolut business loan?

As of now, Revolut does not provide specific business loan products in the UK. The company’s business accounts offer a suite of business features designed to help SMEs manage their finances efficiently, including features like:

• Multi-currency accounts: Hold and exchange multiple currencies at competitive rates, which is particularly useful for businesses with international operations.
• Expense management: Tools to manage employee spending and automate expenses.
• International payments: Low-cost, fast international transfers in multiple currencies.
• Integration with accounting software: Syncs with popular accounting platforms like Xero and QuickBooks for seamless financial management.

While these services can greatly enhance financial operations, they do not replace the need for dedicated business loans when it comes to funding growth, managing cash flow, or making substantial capital investments.

Revolut business loan requirements: what could they look like?

If Revolut were to offer business loans in the future, potential requirements might include:

• Account history: having an existing Revolut business account could be a prerequisite, allowing Revolut to assess your transaction history, cash flow, and overall financial health.
• Business viability: similar to other lenders, Revolut would likely require proof of business viability, including revenue streams, profitability, and business plans.
• Credit assessment: Revolut might implement a credit check process, evaluating both business and personal credit scores to gauge the risk associated with lending.

However, since Revolut does not currently offer these products, businesses seeking loans must look at alternative lenders. 

Alternatives to Revolut business loans

For small businesses familiar with using a digital banking account like Revolut and looking for a business loan, there are a range of financing options that offer similar levels of convenience and online experience. Alternative finance providers in particular can help you access the funding you need, with options catering to different business requirements:

1.  iwoca small business loans

Iwoca is one of the UK’s leading digital lenders, providing short-term loans for SMEs. Our Flexi-loan offer £1,000-£1,000,000 for up to two years, with quick access to funds and flexible terms, designed for small businesses needing to manage cash flow or seize new opportunities.

• Apply in minutes with our simple, online application process
• Get approved within 24 hours
• There are no long-term commitments and we don’t charge for early repayments

Unlike traditional banks, iwoca bases its decisions on your business performance rather than credit scores alone, making it a great option for SMEs who need more accessible finance.

2. Invoice finance

For businesses that need to unlock cash tied up in unpaid invoices, invoice finance  provides access to immediate working capital without taking on traditional debt.

• Invoice finance allows businesses to advance payments on outstanding invoices, providing immediate cash flow relief. 
• This can be especially handy for businesses with long payment terms or those that often face delays in customer payments. 

Providers like Kriya offer digital platforms that make the process quick and seamless, integrating directly with your accounting software to automate the funding of invoices.

3. Merchant cash advance (MCA)

For retail businesses selling online with strong, consistent card sales, a merchant cash advance offers flexible repayment options that align with revenue

• A merchant cash advance provides a lump sum upfront in exchange for a percentage of future card sales. 
• This form of financing is ideal for retail, hospitality, and online businesses that process a significant volume of card transactions. 
• Repayments vary with sales: when business is good, you pay more; when it’s slower, you pay less. This makes it a highly flexible option.

Providers like Liberis and YouLend specialise in MCAs and offer quick access to funds without the need for extensive paperwork.

4. Crowdfunding and Peer-to-Peer (P2P) lending

If you’re looking for a larger sum of capital, seeking funding from a broad base of investors can provide an alternative to traditional debt finance.

• Platforms like Funding Circle (P2P lending) and Seedrs (equity crowdfunding) connect businesses directly with investors, providing a way to raise funds without going through traditional banks. 
• This can be a valuable option for businesses with strong community ties or innovative projects that appeal to individual investors. 

P2P loans often come with competitive rates and terms, while equity crowdfunding allows businesses to offer a stake in the company in exchange for capital.

Digital finance to support SMEs

While Revolut does not currently offer business loans in the UK, there are several digital alternatives that can offer the same convenience as digital banking. 

iwoca has helped over 90,000 companies grow and manage their working capital with flexible, transparent, unsecured loans.

• Only pay interest on funds you draw down
• Repay early with no extra charges 
• No collateral required

To find out how much you could borrow and start your application, check out our business loans calculator.