iwoca business loans: how they work and how we can help

What iwoca offers

This summary is based on iwoca's own website, checked in November 2026. We haven't included rates or fees, which depend on the business and are set out on iwoca's pages and in any offer you receive.

How the Flexi-Loan works

Once approved, you don't have to take the full amount at once. iwoca says you can draw down what you need, when you need it, and you're only charged interest on the amount you've drawn for the days you have it. You repay monthly over your chosen term, and you can repay early at any time without a fee.

iwoca says it will lend to newer businesses, but if you've been trading for under a year, loans are capped at £10,000. Once you've repaid a third of your original limit, it says you can apply for a top-up. Offers stay open for 30 days.

On credit checks, iwoca says it runs a soft check when you apply, which doesn't affect your credit score, and a hard check only if you accept and take the loan. Its FAQs also say its business loans require a personal guarantee from at least one company director, so late payments or defaults could affect that director's personal credit.

• Based in the UK
• A limited company or limited liability partnership
• Aged 18 or over
• Recent business bank statements, or linking your account through Open Banking

For larger or more complex loans, iwoca says it may also ask for VAT returns or full accounts.

How the Revenue Based Loan works

iwoca's Revenue Based Loan is designed for businesses that take card or online payments. Instead of a fixed monthly instalment, you choose a percentage of your monthly revenue to repay, so repayments are lower in quiet months and higher in busy ones. iwoca describes the cost as a fixed fee agreed upfront rather than interest.

To be eligible, iwoca says you need to be a limited company that has traded for at least six months, with at least £500 a month in card and online sales, and access to online banking so it can review your revenue through Open Banking. It notes that minimum performance requirements apply.

Revenue-linked finance can feel easier to manage when sales are seasonal, but it isn't automatically cheaper. Compare the total amount you'll repay with other options before deciding. Our guide to how a merchant cash advance works explains a similar sales-linked model.

Who iwoca tends to suit

From what iwoca publishes, its products are built for UK limited companies that want quick, flexible access to working capital. In our experience, that often suits businesses that:

• need short-term or flexible cash flow funding for stock, a large order or an unexpected bill
• would rather draw funds as needed than take one lump sum
• may want to repay early when cash comes in
• take card or online payments and want repayments that move with sales

It may not be the right fit if you're a sole trader or partnership, as iwoca's loans are for limited companies and LLPs. It may also not suit you if you need a long-term facility well beyond 20% of turnover, or if the money is really for a specific asset, where asset finance can spread the cost over the asset's working life.

Applying direct or through a broker

You can apply to iwoca directly online or by phone, and that's a perfectly reasonable route if you've already decided it's the product you want.

iwoca also works with brokers through an introducer portal and says it partners with thousands of UK brokerages. Coming to us means we can compare iwoca with other lenders on our panel, explain the trade-offs between a flexible loan, a term loan and other products, and suggest a different route if that would serve you better.

We're paid commission by lenders, and we'll explain how we're paid before you decide. Our guide on how commercial finance brokers get paid explains this in more detail.

We're independent of iwoca

Nexgen Business Finance is a credit broker, not a lender. We're not part of iwoca, we're not its agent, and we don't speak on its behalf. iwoca is one of the 100+ lenders we work with, and it makes its own lending decisions and sets its own terms.

iwoca's website states that iwoca Ltd is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 for payment services. The FCA explains that most business lending is unregulated, although some lending of £25,000 or less to sole traders and certain other businesses is generally regulated. If you're unsure which protections apply to a loan, ask the lender before you sign.

If iwoca isn't the right fit

If an iwoca loan doesn't fit your business, or you'd like to compare, these are the alternatives we most often look at:

• Short-term business loans and unsecured business loans from other lenders, which may differ on amount, term and eligibility.
• A revolving credit facility for ongoing access to working capital.
• Invoice finance if you invoice other businesses on credit terms.
• Asset finance to spread the cost of equipment or vehicles, where the asset can be repossessed if repayments aren't kept up.
• Government-backed lending under the Growth Guarantee Scheme, delivered by accredited lenders who still make their own decisions.
• Merchant cash advance for card-taking businesses, which can be quick but often costs more than mainstream borrowing.

Newer businesses have options too. See our guide to business loans for companies trading under two years.