Lender Reviews · 9 min read
iwoca Review UK 2026: Flexi-Loan Rates, Fees and Criteria
iwoca's Flexi-Loan is a credit facility of £1,000 to £1,000,000 that can be held for anything from one day to five years, with interest from 1.5% per 30 days charged only on the balance actually drawn. There are no early repayment fees, and borrowing beyond 12 months typically adds a one-off fee of 5% to 6%. This review sets out what iwoca publishes about the product, checked against its own pages in September 2026, and where it tends to fit against a merchant cash advance or a fixed-term loan.
Who iwoca is
iwoca is a London-based business lender that has become one of the most quoted names in UK small-business finance, with over £4.5 billion lent to date on its own figures and a Trustpilot score of 4.7 from around 12,900 reviews when we checked in September 2026. Its product is the Flexi-Loan, which works closer to a credit line than a traditional loan: the business is approved for a limit, draws what it needs, and pays interest per 30 days on the outstanding balance for the days the money is out. Repay it, and the interest stops.
That structure is the main thing to understand before comparing iwoca with anything else. A fixed-term loan quotes an annual rate over a set schedule. A merchant cash advance fixes the total repayment on day one. The Flexi-Loan sits between the two, and its real cost depends almost entirely on how long the balance stays drawn.
One recent change worth knowing: iwoca previously offered a revenue-based cash advance repaid from sales, and has withdrawn it. Its own cash advance page now states plainly that it has stopped doing revenue-based loans. A business that wants repayments tied to card takings is therefore looking at other providers, which our MCA provider comparison covers; iwoca now competes purely on the credit-facility model.
The published terms
| Feature | iwoca's published position |
|---|---|
| Amount | £1,000 to £1,000,000 |
| Term | 1 day to 5 years |
| Interest | From 1.5% per 30 days, on the drawn balance only |
| Representative example | 3.33% per 30 days, stated as 49% APR representative |
| Longer-term fee | Typically 5% for 13 to 24 months, 6% beyond that |
| Early repayment | No early repayment fees |
| Structures accepted | Limited companies and partnerships, UK based |
Figures checked September 2026 against the sources listed at the end of this page. Lender terms change without notice, and the rate an individual business is offered depends on its own profile.
What the pricing means in practice
Two details in iwoca's pricing deserve more attention than they usually get. The first is the per-30-days framing. A rate of 1.5% per 30 days compounds to a much higher annual figure than 1.5% suggests at a glance, which is why iwoca's own representative example carries a 49% representative APR. The published small print adds that at least 51% of customers taking a loan of £25,000 or less receive the representative APR or lower. Comparing that number against a bank loan's APR is only meaningful if the money would genuinely be out for a full year.
The second is the drawn-balance charging. A business that draws £30,000 for six weeks and repays pays interest on £30,000 for six weeks, not for a contracted term. For short, sharp needs, a VAT quarter, a stock buy ahead of a busy period, a gap between an invoice and its payment, that mechanic can make the facility cost less in pounds than products with lower headline annual rates. Held near its limit for years, the same facility becomes an expensive way to borrow. The funding calculator is the quickest way to put pound figures against a scenario.
Eligibility, as published
iwoca's support pages state that it works with limited companies and partnerships across a range of industries, from newer businesses to established ones, and that it weighs the current strength of the business rather than demanding a perfect history. It does not publish fixed minimums for trading time or turnover on those pages; the assessment happens per application. Writing about the wider market, iwoca has noted that revenue-based lenders care more about revenue and card sales than credit score, and that most run soft checks at the application stage.
Directors should still expect a personal guarantee on unsecured corporate lending of this kind; that is standard across the UK market rather than specific to iwoca. Our page on personal guarantees covers what signing one actually commits you to.
Speed
iwoca's site quotes money in the account in as little as 2 minutes 37 seconds, labelled as its record. Treat that the way you would treat any lender's record: proof the rails are fast, not a promise about your case. Clean applications in this part of the market commonly see a decision the same day, with funds following in one to a few working days. Applications that need follow-up information, or involve more complex structures, take longer. Our guide to how alternative lenders assess applications covers what underwriters read and why timelines stretch.
Where the Flexi-Loan fits, and where it does not
Against a merchant cash advance, the trade is flexibility against certainty. The advance fixes the total repayment up front and collects it from card sales, so a quiet month costs nothing extra; the Flexi-Loan rewards early repayment but keeps charging while the balance sits. Businesses with strong, steady card takings often compare the two directly, and the cheaper option in pounds depends on the repayment pattern, not the headline rate.
Against a fixed-term business loan, the comparison is about duration. Money needed for two years or more, for a refit, an acquisition, a vehicle, is usually priced better on term products, and the Flexi-Loan's 5% to 6% longer-term fee points the same way. Money needed for weeks is where the drawn-balance mechanic earns its keep.
If iwoca has declined an application, or offered less than the business needs, the usual next step is a lender whose criteria weight different things. Our iwoca alternatives page compares the realistic options.
How CapExpand fits in
iwoca is one of the lenders on our panel. CapExpand is a commercial finance introducer, not a lender: we put a business's case to the lenders on our panel whose published criteria fit its trading, iwoca among them, and the lender makes its own assessment and decision. We currently work with UK limited companies and LLPs only, for business and commercial purposes. The service costs the business nothing; the lender pays us a commission if a deal completes. There is more detail on our how we work page.
Frequently asked questions
What interest rate does iwoca charge?
iwoca prices the Flexi-Loan as a rate per 30 days rather than an annual percentage. Its published starting rate is 1.5% per 30 days, and the representative example on its site is 3.33% per 30 days, which iwoca states as a 49% representative APR. The rate offered depends on the business profile, and interest is charged only on the drawn balance for the days it is outstanding.
Is there a fee for borrowing over a longer term?
Yes, according to iwoca’s own loan page. Borrowing for more than 12 months typically adds a fee of 5% for terms of 13 to 24 months and 6% for longer. Borrowing within 12 months does not carry that fee, and there is no arrangement fee quoted for the standard product.
Can I repay an iwoca Flexi-Loan early?
Yes. iwoca publishes no early repayment fees, and because interest is charged on the outstanding balance for the days it is used, repaying early reduces the total interest paid. That is a structural difference from a merchant cash advance, where the total repayment is fixed at the start.
How much can I borrow from iwoca?
The published range is £1,000 to £1,000,000, held for anything from a single day up to 5 years. The limit offered to an individual business depends on its trading position, and iwoca states that a top-up can be requested once around a third of the original limit has been repaid.
Who is eligible for an iwoca Flexi-Loan?
iwoca states that it works with limited companies and partnerships based in the UK, and that it considers applications from a wide range of businesses, weighting the current strength of the business rather than requiring a spotless history. Exact thresholds are assessed per application rather than published as fixed minimums.
How fast does iwoca pay out?
iwoca’s marketing quotes a fastest-ever payout of 2 minutes 37 seconds, which it labels as its record rather than a typical case. Same-day decisions are common for clean applications across this part of the market. Cases needing follow-up information take longer.
Is a Flexi-Loan the same as a merchant cash advance?
No. A Flexi-Loan is a credit facility with interest charged per 30 days on what is drawn, repaid on a schedule the borrower controls. A merchant cash advance is a fixed total repayment collected as a percentage of card sales, so the cost does not fall if it is cleared early. Which structure costs less depends on how long the money is actually needed.
Does CapExpand work with iwoca?
iwoca is one of the lenders on our panel. CapExpand is a commercial finance introducer, not a lender: the assessment and the decision are iwoca’s, and the figures on this page come from iwoca’s published pages, checked September 2026.
Sources (checked September 2026)
- iwoca: Flexi-Loan (amounts, term, rates, fees, early repayment, representative example)
- iwoca: Business loans (range, payout record claim)
- iwoca support: Who can apply for a Flexi-Loan (structures, approach to assessment)
- iwoca: FAQ (top-ups)
- iwoca: Merchant cash advance explained (soft checks, revenue weighting)
- iwoca: Cash advance page (withdrawal of revenue-based loans)
- Trustpilot: iwoca (score and review count as checked)
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Tell us what the money is for and how long you need it, and we'll put it to the lenders on our panel whose published criteria fit, iwoca included. Two-minute form, soft check only, or call 0333 041 3127 during office hours.
Check your optionsImportant information
CapExpand Ltd is not authorised by the Financial Conduct Authority and can only complete non-regulated introductions. We work with UK limited companies and LLPs only, for business and commercial purposes. We are not a lender and we do not provide financial, tax or legal advice. We work with a panel of lenders whose particulars are available on request, and we receive commission from the lender if a deal completes, at no cost to you. All lending is subject to status, valuation where applicable and the lender's own checks.
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CapExpand Ltd (Company No. 14433858) is a commercial finance introducer, not a lender. We are not currently authorised or regulated by the Financial Conduct Authority and do not provide financial advice. All information on this page is for educational purposes only. Funding is subject to status and lender criteria. CapExpand will receive a commission from providers at no extra cost to you.