Funding Circle vs iwoca: Which Fits Your Business?
Facts checked 7 September 2026 · first published 2 July 2026
Re-read on 7 September 2026: Funding Circle's small business loans page, calculator, support pages and homepage; iwoca's Flexi-Loan page, FAQ and support articles.
We introduce business to 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 - £1m |
| Term | 6 months to 6 years | 1 day to 5 years |
| Pricing | Fixed rate for the whole term, set on the offer; full breakdown on its own calculator | Interest charged per 30 days on the balance you hold, variable |
| Repay early and save? | Interest saved on the remaining term | 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 and LLP only since 23 Feb 2026, 1+ year trading | Ltd companies and LLPs, no published minimums; startups capped at £10k |
| Personal guarantee | Required (twice the loan on sub-24-month Flexible Loans) | Required from at least one director |
| 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 a commercial finance broker, not a lender, and this is not financial advice.
The number that actually decides it
Run both structures on the same borrowing and the answer usually falls out on its own. Take £100,000 over 24 months. A fixed term loan charges for the whole 24 months from day one, and its own calculator sets out every line of that before you apply. A facility charged per 30 days on the balance you are actually holding, drawn for four months and cleared, costs a fraction of the same facility held for two years. Length of hold, not the headline rate, is what moves the total.
Which is why we ask what the money is for before we ask how much. A refit, a vehicle or an acquisition is a known amount over a known term, and a fixed instalment fits that shape. Stock that turns, a VAT bill or the gap between an invoice and its payment is money you want back out of the facility quickly, and paying interest only on the days you use it fits that instead. Neither structure is better in the abstract.
One thing catches people late. Sole traders and partnerships were withdrawn from the Funding Circle proposition on 23 February 2026, and iwoca's product pages name limited companies and limited liability partnerships. Both lenders take a personal guarantee, and on the sub-24-month Flexible Loan that guarantee is set at twice the amount borrowed. Read the guarantee before you read the rate.
Funding Circle or iwoca: which structure fits which need?▼
It depends on how long you keep the money. Funding Circle is a fixed term loan repaid in equal instalments over 6 months to 6 years, which fits a known amount over a known term such as a refit, a vehicle or an acquisition. iwoca is a facility charged only on the balance you are holding, so money you want back out quickly, such as stock that turns or a VAT bill, fits it instead. Each lender quotes its own figures on its own offer; compare the total repayable in pounds over the months you expect to hold the money.
How is a Funding Circle loan structured?▼
As a fixed term loan: one amount, one term of 6 months to 6 years, and equal instalments that clear the balance by the end, with the full breakdown shown on the offer before anything is signed. Funding Circle publishes a loan calculator that sets out every line of the repayment for a given amount and term, and we walk through that breakdown with you from the start so the total in pounds is the figure you compare, not the headline.
Do both lenders require a personal guarantee?▼
Yes. Funding Circle states that a personal guarantee will be required if a loan is approved, and iwoca requires one from at least one company director. iwoca describes its loans as unsecured with no asset requirements. Funding Circle’s standard loan does not require property as security, though its homepage labels the product a secured loan, and on its sub-24-month Flexible Loan the guarantee is set at twice the amount borrowed. 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?▼
No. Funding Circle stopped accepting sole traders and partnerships on 23 February 2026 and now lends only to limited companies and LLPs; iwoca’s product pages say limited companies and limited liability partnerships. Sole traders are excluded by both, which catches a lot of people out after a full application. We work with UK limited companies, LLPs, sole traders and partnerships.
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, which does not affect your credit score, and you see the total cost of each side by side.
Get All QuotesSources and references
- Funding Circle: small business loans (loan terms, personal guarantee, trading minimum)
- Funding Circle: loan calculator (£100,000 over 24 months worked example)
- Funding Circle support: non-limited loans (sole traders and partnerships withdrawn from 23 February 2026)
- Funding Circle: shorter-term business loans (Flexible Loan guarantee set at twice the loan)
- iwoca: Flexi-Loan product page (amounts, term, rates, longer-term fee)
- iwoca: FAQ (rate range, unsecured position, £10,000 startup cap)
- Financial Services Register: check any firm’s FCA status
- British Business Bank: small business finance markets
CapExpand Ltd (FRN 1060885) is an Appointed Representative of White Rose Finance Group Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630772). We are a credit broker, not a lender. We do not provide financial advice.