iwoca Ltd is a London-based lender. Its Flexi-Loan is an unsecured, draw-down business loan of £1,000 to £1 million over one to five years. iwoca lists UK-based limited companies and limited liability partnerships as eligible, requires a personal guarantee from at least one director and charges no early repayment fee.
At a glance
- Products
- Flexi-Loan, iwocaPay and a business credit card
- Published amount range
- £1,000 to £1 million
- Published term
- One to five years
- Eligible business types
- Limited companies and LLPs based in the UK
- Regulatory status
- Registered with the FCA for payment services, as iwoca states
- Head office
- London
| Product | Amount | Term | How you repay |
|---|---|---|---|
| Flexi-Loan (business loan) | £1,000 to £1 million | One to five years | A set amount each month; interest charged only on what is drawn |
| iwocaPay (B2B pay later) | Up to £30,000 for trade customers to spend | 1, 3 or 12 months | The trade customer pays over the term; the seller is paid at checkout |
Figures are iwoca’s own published terms, checked on . They can change, and what you are offered depends on your business: see iwoca’s site for current terms.
Who is iwoca?
iwoca is a London-based business lender whose main product is an unsecured loan it calls the Flexi-Loan. The legal entity is iwoca Ltd, company number 07798925, incorporated in October 2011 according to Companies House, with its registered office at 10 Queen Street Place, London. Alongside iwoca loans it offers iwocaPay, a pay-later product for trade customers, and a Visa business credit card issued by Enfuce UK Limited.
What iwoca loans and products are available?
iwoca publishes terms for two products: the Flexi-Loan and iwocaPay. We have not listed terms for the credit card.
| Product | Amount | Term | How it is repaid |
|---|---|---|---|
| Flexi-Loan | £1,000 to £1 million | One to five years | A set amount each month; interest is charged only on what you have drawn |
| iwocaPay | Up to £30,000 for your trade customers to spend | 1, 3 or 12 months | Your customer pays over the term; you are paid when they check out |
On the Flexi-Loan, iwoca says you can typically borrow up to 20% of your annual turnover, and loans are capped at £10,000 if you have been trading for under a year. Once you have an offer, you have 30 days to decide.
Who can apply to iwoca?
iwoca’s loan page lists three conditions: the business is a limited company or a limited liability partnership, it is based in the UK, and the applicant is 18 or over. Sole traders and ordinary partnerships are not on that list.
The pages we checked do not state a minimum trading time or a minimum turnover, although the £10,000 cap applies to businesses trading for under a year. They do not list excluded sectors either.
How do repayment and cost work?
You repay a Flexi-Loan as a set monthly amount over the term you choose, and interest is charged only on the amount you have drawn. iwoca publishes its rates and any fees on its product page, and says there is never a fee for repaying early. Pricing changes and the rate you are offered depends on your business, so check iwoca’s own page for current figures and compare the total cost of the loan, not only the rate.
iwoca requires a personal guarantee from at least one company director. If the company cannot repay, the guarantor can be asked to repay the debt personally.
How is iwoca regulated?
iwoca’s site states that “iwoca Ltd is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 (reference number: 791804) for the provision of payment services.” That statement covers payment services and does not say iwoca is authorised for lending. For a business borrower, the point to understand is that most lending to limited companies is not FCA-regulated consumer credit, so the loan agreement and the guarantee set out your rights and obligations.
What are the alternatives to iwoca?
The main alternatives are another term loan or finance repaid from sales. iwoca’s published criteria do not cover sole traders, and a set monthly payment and a director’s guarantee will not suit every business.
- Nucleus Commercial Finance also offers unsecured business loans with scheduled repayments.
- YouLend offers revenue-based finance repaid as a percentage of sales.
See every profile in business lenders compared, and read how to compare business loan lenders before you choose. For government-backed options, see our guide to the Growth Guarantee Scheme, which lists where to find the British Business Bank’s accredited lenders.
Applying through a broker
Capzy is a credit broker, not a lender, and gets paid by the lender. One application lets your business compare options across lenders instead of approaching each one in turn. Any offer is subject to status and lender criteria. To start, check your funding options.
Sources
- Small business loans, iwoca
- iwoca home page, iwoca
- iwocaPay for sellers, iwoca
- IWOCA LTD (company number 07798925), Companies House
Capzy is a credit broker, not a lender. We get paid by the lender. This page is general information, not financial, tax or legal advice. Finance is subject to status, lender criteria and affordability; rates and terms depend on your circumstances.