This song finds George Michael propositioning someone he would like to have sex with. It's a pretty obvious proposition, but this is the same guy who sang "I Want Your Sex" in 1987, which advocated monogamy and intimacy. In this song, "Funky" seems to mean "adventurous," which is a quality the singer looks for in a mate: "Everybody wants a lover like that."
This was one of the songs George Michael made with a video featuring several supermodels, including Linda Evangelista, Estelle Lefébure, Nadia Auermann, and Tyra Banks, as well as an amusing appearance by actress Julie Newmar, who played the original Catwoman in the TV series Batman.
The opening lines that are spoken before the song begins: "Would you like me to seduce you? Is that what you're trying to tell me?" is Anne Bancroft's dialogue in the movie The Graduate, where she plays an older woman who does indeed seduce the young Dustin Hoffman. The dialogue plays intermittently through the song.
Suggestion credit: Mike - Santa Barbara, CA, for above 2
The line at the end of the song, "Will you stop playing with that radio of yours? I'm trying to get to sleep," comes from the BBC sitcom Hancock's Half Hour.