Funding Circle vs iwoca: Which Fits Your Business?
We place business with both, so this is the comparison we actually run for clients: a fixed term loan against a flexible credit facility, with the fees nobody puts in the headline.
Get Quotes from Both| Feature | Funding Circle | iwoca |
|---|---|---|
| Funding Type | Fixed term loan, monthly repayments | Flexi-Loan (draw down, repay, redraw) |
| Amount | £10k - £750k | £1k - £500k typical |
| Term | 6 months to 6 years | Up to 24 months, rolling |
| Pricing | From ~6.9%/year plus a one-off completion fee | Interest per 30 days on the balance you hold |
| Repay early and save? | Interest saved, completion fee already paid | Yes, pay interest only on days used |
| Speed | Decision from 1 hour, funds typically 48 hours | Decision within 24 hours, same-day payout possible |
| Eligibility | Ltd companies, typically 1+ year trading | Ltd companies and partnerships, lower minimums |
| Personal guarantee | Required | Required |
| Best For | A known one-off amount over years: refit, vehicle, acquisition | Working capital that comes and goes: stock, VAT, bridging a gap |
Figures reflect each lender's published ranges at the time of writing and change without notice. Your quote depends on your business profile. We are an introducer, not a lender, and this is not financial advice.
Which is cheaper: Funding Circle or iwoca?▼
It depends on how long you keep the money. Funding Circle is a fixed term loan with rates from around 6.9% per year plus a one-off completion fee, so it tends to work out cheaper over 2 to 6 years. iwoca charges interest monthly on what you actually owe, so if you borrow for a few months and repay early, iwoca often costs less in total. Always compare the total repayable in pounds, not the headline rate.
Watch out for the Funding Circle completion fee. What is it?▼
Funding Circle adds a one-off completion fee to the loan, which in their own worked examples can be several thousand pounds on a six-figure loan. It sits behind a breakdown toggle in their calculator, so plenty of borrowers only clock it late in the process. It is not hidden, but you have to look. We put it in the total cost comparison from the start.
Do both lenders require a personal guarantee?▼
Yes. Both Funding Circle and iwoca require a personal guarantee from a director on business loans. Neither takes your property as security, but a personal guarantee is still a serious commitment, and we make sure you understand it before anything is signed.
Can sole traders use Funding Circle or iwoca?▼
Broadly no. Funding Circle lends to limited companies, and iwoca works with limited companies and partnerships. Sole traders are excluded by both, which catches a lot of people out after a full application. CapExpand currently arranges funding for limited companies and LLPs.
Which is faster, Funding Circle or iwoca?▼
Both are quick. Funding Circle advertises a decision in as little as 1 hour with funds typically within 48 hours. iwoca gives most decisions within 24 hours and can pay out the same day once approved. In practice the difference is rarely the deciding factor. What suits your repayment pattern matters more.
We'll tell you which one actually fits
Both are on our panel, so we have no reason to push either. One enquiry, soft credit check, and you see the total cost of each side by side.
Get All QuotesCapExpand 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.