Two very different products
multifi Flexi Credit and YouLend are not direct alternatives — they use fundamentally different pricing models, and the difference has a significant impact on what your business actually pays.
multifi uses a monthly interest rate charged on drawn funds. The cost is time-based: repaying early saves money. YouLend uses a factor rate model — a fixed multiplier applied to the advance amount. The total repayment is fixed regardless of how quickly you repay. Repaying early does not reduce the cost.
Side-by-side comparison
| Feature | multifi Flexi Credit | YouLend Revenue Finance |
|---|---|---|
| Product type | Revolving credit facility | Revenue-based finance (RBF) |
| Pricing model | Monthly interest rate on drawn funds | Factor rate (fixed multiplier on advance amount) |
| Facility amount | £10,000 – £350,000 | Varies — based on monthly revenue |
| Cost basis | Time-based — repay early, pay less | Fixed — repaying early does not reduce total cost |
| Repayment method | Fixed monthly instalments | Percentage of daily card / bank revenue |
| Repayment predictability | Fixed — exact amount known each month | Variable — depends on daily revenue |
| Setup fee | £0 | Not publicly disclosed |
| Early repayment saving | Yes — interest stops immediately | No — total repayment fixed by factor rate |
| Reload / repeat access | Automatic at 66% repaid — no reapplication | Available — new agreement required |
| Cashflow forecasting | Easy — fixed monthly repayment known in advance | Difficult — repayment varies with daily revenue |
| Available independently of bank | Yes | Yes (often embedded in platforms) |
| FCA regulated | Yes — via Modulr FS Ltd, FRN 900573 | Revenue-based finance is not always FCA regulated — check terms |
The real cost of factor rate pricing
Factor rates appear simple — but they obscure the true cost of borrowing in a way that can be extremely expensive for healthy, high-performing businesses.
| Scenario | YouLend (1.25 factor rate on £20,000) | multifi Flexi Credit (2.49%/month on £20,000) |
|---|---|---|
| Total repayment amount | £25,000 (fixed) | Reduces with early repayment |
| Repaid in 4 months | Effective APR ~112% | Total cost ~£2,075. Effective APR ~32% |
| Repaid in 6 months | Effective APR ~66% | Total cost ~£3,110. Effective APR ~32% |
| Repaid in 12 months | Effective APR ~33% | Total cost ~£6,000. Effective APR ~32% |
| Benefit of early repayment | None — total cost fixed at £5,000 | Yes — pay less interest for shorter period |
Repayment predictability
YouLend's repayments are collected as a percentage of daily card or bank revenue — typically 10%–20% of daily takings. This means repayment amounts vary every day depending on how much your business takes in. For a business trying to forecast cashflow, manage supplier payments, or plan payroll, this variability adds a layer of uncertainty that fixed monthly repayments eliminate.
multifi collects a fixed monthly amount on the 8th of each month. Your finance director knows exactly what leaves the account and when.
When might YouLend make sense?
Revenue-based finance is best suited to businesses with highly variable revenue — particularly e-commerce or hospitality businesses where card takings fluctuate significantly. The variable repayment model means repayments automatically reduce in slow periods, reducing default risk. For businesses with stable, predictable revenue, the variable repayment model offers no advantage — and the fixed factor rate cost means it is almost always more expensive than a revolving credit facility.
The bottom line
For established UK businesses with predictable revenue, multifi Flexi Credit is almost always a lower-cost, more transparent alternative to revenue-based finance. The monthly interest rate means repaying early saves money. Fixed repayments make cashflow forecasting straightforward. Zero fees mean no hidden costs. YouLend's factor rate model may suit businesses with highly variable daily revenue where the automatic repayment reduction during slow periods is genuinely valuable — but the total cost is higher and does not reduce with performance.
Frequently asked questions
What is the difference between multifi Flexi Credit and YouLend?
multifi uses a monthly interest rate on drawn funds — repay early and pay less. YouLend uses a factor rate — total repayment is fixed regardless of how quickly you repay. For businesses that repay quickly, YouLend's effective APR can exceed 100%.
What is a factor rate and how does it affect the cost of YouLend finance?
A factor rate is a fixed multiplier on the advance amount. A 1.25 factor rate on £20,000 means you always repay £25,000 — whether in 4 months or 12 months. The effective APR on 4-month repayment is approximately 112%. Repaying early saves nothing.
Is revenue-based finance more expensive than a revolving credit facility?
For businesses that repay quickly, yes — often significantly more expensive. Factor rates do not reduce with early repayment. A revolving credit facility like multifi charges interest only for the time funds are outstanding, so strong performance and early repayment always reduces the total cost.