iwoca

iwoca: flexible finance for UK SMEs

iwoca is an independent financial institution specialising in loans for small and medium-sized businesses in the UK. It does not operate as a bank, but as a company created specifically for SMEs, with the stated aim of providing agile access to finance when the business needs it. Its main product is the Flexi-Loan, a flexible line of credit that allows capital to be drawn down as required.

Finance products

iwoca's offering is built around several solutions:

• Flexi-Loan: a revolving line of credit for working capital. The customer draws down only the amount they need and when they need it, with repayment terms of up to 5 years. It allows overpayments or early repayment without fees and offers the possibility of a payment holiday or saving interest by paying ahead of schedule.
• Short-term loan: finance for one-off cash flow needs over a few weeks or months. It can be repaid at any time without penalty; interest accrues daily, so you only pay for the time you use it.
• Business credit card: a complementary product for operating expenses.
• iwocaPay: an integrated payment solution for businesses.

Amounts, terms and conditions

Loans range from £1,000 to £1,000,000, with repayment terms from 1 day to 5 years. The funding limit can reach up to 20% of the company's annual turnover. Interest rates start at 1.5% per 30 days and are charged only on the outstanding balance for the days you use it. For borrowing over 12 months, an additional fee may apply: typically 5% for loans of 13 to 24 months and 6% for longer terms. The website's calculator shows an example of 6 monthly repayments of £5,123, with a total repayment of £61,471 and a representative rate of 3.33% per month (49% APR). The company states that at least 51% of customers who take out loans of £25,000 or less receive the representative APR or a lower rate.

Application process and requirements

The process is designed to be quick: the application is completed online in about 5 minutes and a decision is communicated within 24 hours. If approved, the money can be transferred to the applicant's bank account and usually arrives within hours. The application does not affect your credit score because only soft checks are carried out; however, if the loan is drawn down, it will appear on the company's credit report. To apply for finance, you must be based in the UK and be a limited company or a limited liability partnership. No minimum trading history or specific sector is required. Basic business details and bank statements from the last year are requested, although you can also link your account via Open Banking. Loans require a personal guarantee from at least one company director.

Flexibility and debt management

The Flexi-Loan allows top-ups once a third of the original credit limit has been repaid, subject to updated company information. Early repayment or additional payments do not incur fees. Interest on business loans is typically tax deductible as a business expense, although the principal is not.

Awards and reach

The company has received several industry awards, including: Fintech Awards London (Fintech Company of the Year 2026), Moneynet (Best Small Business Loan Provider 2025 and Best Small Business Lender 2024), Wealth and Finance (Best Small Business Financing Platform UK 2025), Yorkshire Financial Awards (Lender of the Year 2023) and Xero UK (Financial Service App of the Year 2023). According to its own presentation, more than 100,000 businesses have received funding from iwoca.

Use cases and customers

Funding is used for purposes such as buying stock, growth, covering initial costs or managing cash flow. The website includes customer testimonials from sectors such as sports equipment (MuscleSquad), beverages (JBN Beverages), construction (The Building Co.), vehicle repair (ECF Accident Repair Group), cleaning (CQD Cleaning Services), plants (Simply Plants), cosmetics (Nail and Cocktails), healthcare training (Healthcare Learning Ltd) and fashion (Olivia and Pearl), among others.