Key takeaways
- iwoca lends £1,000 to £1 million, typically up to about 20% of annual turnover, over 1 to 5 years (checked 6 November 2026).
- iwoca interest starts from 1.5% per 30 days, and its representative example is 49% APR at 3.33% per 30 days.
- On iwoca's representative example, a £10,000 loan over 12 months costs £12,294 in total.
- iwoca charges no fee for early repayment, and interest runs only on the days you use the money.
- iwoca adds a long-term fee of typically 5% for 13 to 24 months and 6% for longer terms; 12-month loans have none.
- iwoca's pages list UK limited companies and LLPs as eligible, and a director's personal guarantee is required.
- iwocaPay is a B2B buy now, pay later service that lets trade customers spend up to £30,000 and repay over 1, 3 or 12 months.
iwoca is a UK online lender offering flexible business loans of £1,000 to £1 million to limited companies and LLPs, priced from 1.5% per 30 days with a representative 49% APR. You pay interest only on the days you borrow, with no early repayment fee, but a director must give a personal guarantee. This review uses iwoca’s own pages, checked on 6 November 2026, and does not give a score or verdict.
What is iwoca?
iwoca is an online lender to small UK businesses, run by iwoca Limited (company number 07798925, registered office 10 Queen Street Place, London EC4R 1AG). It says it has funded over 100,000 businesses.
iwoca is registered with the FCA under the Payment Services Regulations 2017, reference 791804. It is a lender, not a bank, so it holds no deposits and there is no FSCS cover.
How does an iwoca loan work?
An iwoca loan works like a credit limit you draw from: you take what you need and pay interest only for the days the money is out. iwoca’s business loans page sets these terms:
- borrow £1,000 to £1 million, typically up to about 20% of annual turnover
- terms of 1 to 5 years, repaid monthly
- draw down funds as needed; offers stay open for 30 days
- request a top-up without reapplying from scratch once eligible
The homepage also describes a short-term option for cash flow needs lasting weeks or months, with interest accruing daily.
What does iwoca cost?
iwoca charges interest from 1.5% per 30 days, plus a long-term fee on loans over 12 months. Its representative example is 3.33% per 30 days, or 49% APR. iwoca says at least 51% of customers borrowing £25,000 or less get that rate or lower.
| Term | Long-term fee | Early repayment fee |
|---|---|---|
| Up to 12 months | None | None |
| 13 to 24 months | Typically 5% | None |
| Over 24 months | Typically 6% | None |
iwoca’s calculator shows a £10,000 loan over 12 months at the representative rate costing £12,294 in total. Repay early and the interest falls: £333 after 1 month, £929 after 3 months and £1,637 after 6 months, against £2,294 at full term.
A rate quoted per 30 days looks small but adds up. Compare it with lenders that quote a yearly rate, such as Funding Circle, using our guide to business loan interest rates.
Who can borrow from iwoca?
iwoca’s homepage and loans page say you must be a UK-based limited company or limited liability partnership, and the applicant must be 18 or over. All ages of business and industries are accepted.
The pages differ on detail. iwoca’s support FAQ says “limited company or a partnership”. None of the pages we checked lists sole traders. If you are self-employed, call iwoca on 020 3778 0274 before applying, or see our guide to business loans for sole traders.
New businesses can borrow, but with a cap of £10,000 on the first credit limit. The loans page applies that cap to businesses trading under a year; the self-employed loans page says under six months.
What does iwoca need from you?
iwoca needs basic business details and bank statements from the last year, or Open Banking access. Larger loans and some company types need more documents.
A personal guarantee from at least one director is required. If the business cannot pay, the guarantor becomes personally liable for what is owed. The loans are otherwise unsecured, with no asset requirement.
Applying runs a soft credit check that does not affect your credit score. A hard check happens only when you accept the loan.
What is iwocaPay?
iwocaPay is iwoca’s B2B buy now, pay later service for sellers. Trade customers can spend up to £30,000 and repay over 1, 3 or 12 months, while the seller is paid in full at checkout.
Sellers choose who pays. Either the seller pays a fixed percentage per transaction and the customer gets interest-free credit, or the seller pays nothing and the customer pays interest. iwoca quotes fees individually. Its Pay Now option, by Open Banking, is free to both sides.
Which applies to you?
- If you need short-term working capital and may repay early, daily interest and no early repayment fee suit that pattern.
- If you want the lowest yearly rate over several years, compare the long-term fee and APR with term lenders first.
- If you are a sole trader, check eligibility with iwoca directly, as its pages list limited companies and LLPs.
- If you have traded only a few months, expect a first limit of no more than £10,000.
- If you cannot give a personal guarantee, iwoca’s loans are not an option.
- If your problem is slow-paying customers, compare invoice finance as well.
How to apply
- Start an application online, which iwoca says takes about 5 minutes.
- Enter your business details and connect Open Banking or upload a year of bank statements.
- Get a decision; many are instant, and larger loans are reviewed within 24 hours.
- Accept the offer and sign the director’s personal guarantee.
- Draw down funds, which usually reach your bank within hours.
Frequently asked questions
How much can I borrow from iwoca?
You can borrow £1,000 to £1 million, typically up to about 20% of annual turnover. New businesses start with a limit of up to £10,000.
What is iwoca’s interest rate?
Interest starts from 1.5% per 30 days. iwoca’s representative example is 3.33% per 30 days, equal to 49% APR.
Can I repay an iwoca loan early?
Yes. There is no early repayment fee, and you pay interest only for the days you used the money.
Does iwoca lend to sole traders?
iwoca’s pages list UK limited companies and LLPs, and none we checked on 6 November 2026 mentions sole traders. Contact iwoca to confirm.
Does iwoca need a personal guarantee?
Yes. At least one director must give a personal guarantee, which makes them personally liable if the business cannot repay.
Does applying to iwoca affect my credit score?
No. iwoca runs a soft check at application and a hard check only when you accept a loan.
Sources
Rates, thresholds and rules in this guide were checked against HMRC and GOV.UK guidance on 6 November 2026. Tax rules change, so check the current position on GOV.UK or with a qualified adviser before acting. This guide is general information, not personal advice.