NimbleFins' Iwoca Review: The Business Loans for You?

NimbleFins' Iwoca Review: The Business Loans for You?

Iwoca is a popular lender for small businesses with an impressive 4.7 customer rating on Trustpilot. We take a closer look.

Good for

  • 4.7 customer rating on Trustpilot
  • Simple and quick application process
  • Straightforward fee structure
  • No early repayment fees
  • Easy loan top ups
  • Flexible repayment options

Bad for

  • Short term loans for up to 12 months only
  • Personal guarantee may be needed
  • Currently offer limited range of business loans
  • High interest rates of at least 2% per month
  • Loans for start ups may be limited to £10,000

Editor's Rating

4.5/5.0

Iwoca is a popular lender for small businesses with an impressive 4.7 customer rating on Trustpilot. We take a closer look.

Iwoca stands for instant working capital. The company was set up in March 2012 to provide flexible credit for small businesses. Since then, it’s become one of the fastest growing lenders for small business loans and has leant over £500 million to businesses across the UK.

In This Review

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  • Borrow from £1,000 to £200,000 over 12 months
  • Repay early with no fees
  • Decisions in 1 working day
  • Help from a dedicated account manager

Iwoca Business Loan Overall Review

Iwoca is a lending company designed with small businesses in mind. If you’ve struggled to get finance elsewhere then Iwoca may be right for you. We are impressed by their great customer reviews and easy to use website. Their application process is extremely straightforward and only takes a few minutes. Trustpilot reviewers comment on their excellent customer service and easy application process and rate them 4.7 out of 5 stars.

Our researcher used their website chat function and received a helpful and detailed response within 30 minutes from their customer service team. Iwoca also offers a dedicated account manager once your loan is accepted.

On the downside, Iwoca only offers short term loans of up to 12 months. Interest rates are on the high side, starting at 2% per month. That’s because Iwoca currently only offers flexible working capital loans which can be more expensive than simple business loans. Start-up companies, who have been trading for less than 12 months, may be limited to a loan of only £10,000, depending on their circumstances. This might not be enough for some growing businesses.

Bottom Line

Iwoca offers short term loans of up to 12 months that are designed for small businesses. The application process is quick and easy and you’ll receive a decision within 24 hours. It could be a great option if you’ve been refused business finance by a traditional bank. However, if you want a medium or longer term loan, you’ll need to look elsewhere.

Key features of Iwoca Business Loans

  • Borrow £1,000 - £200,000
  • Apply online in 5 minutes
  • Get approved in 24 hours
  • Simple fee structure with no hidden fees
  • Flexible loans that are easy to top up
  • Dedicated account manager

Types of business loan available from Iwoca

Iwoca currently offers three different types of business loan, a flexible working capital loan, revenue based loan and buy now pay later finance. Here are some of their loans’ key features.

Loan amountKey featuresSuitable for
Flexi-Loan£1,000 to £200,000
  • Flexible lending and easy top ups
  • Can borrow up to 10% of last year’s revenue
  • Interest starts at 2% per month
  • Borrow for up to 12 months
  • Small businesses that struggle to access traditional lending
Revenue Based Loan£1,000 to £50,000
  • Repay loan with future card sales
  • Can borrow up to to 2 times your monthly revenue
  • 6-12% fixed fees rather than interest
  • Bank account linked to Iwoca with open banking
  • Borrow for up to 9 months
  • Small businesses that take card payments
  • Small business that trade on Ebay, Amazon, Etsy or Shopify
IwocaPayN/A
  • Customer can pay now or split payment over 3 months
  • Your business receives instant funds
  • You pay 3% interest per month until customer payment due
  • Small businesses where customers may spend more if they split payments into 3

Iwoca’s loans in more detail

Flexi-Loan (Working capital loan)

Iwoca’s most popular loan is its Flexi-Loan which is a type of working capital loan. It’s a flexible loan that’s designed to help businesses with short term cash needs.

Businesses can borrow from £1,000 to £200,000 and the application process is quick and easy. You’ll be limited to a maximum loan term of 12 months.

Once you’ve paid back a third of your original credit limit, you’ll be able to apply for a top-up as needed. Iwoca will just need updated information about your business and will assess your application for a top up within a few hours.

If you own a start up business with no trading history, your loan may be limited to £10,000. For other businesses Iwoca will base your lending limit on your revenue and profit margin. Most businesses can borrow up to 10% of their turnover for the last 12 months.

To apply for a flexi loan you will need to know how much you want to borrow over what period. You will also need basic details of your business and your recent bank statements. You also have the option to link your business bank account to Iwoca through open banking. This means your application process will be quicker as you won’t need to submit bank statements.

Interest costs start at 2% per month and will depend on Iwoca’s assessment of your business.

Take a look at our detailed article if you want to know more about how working capital loans work.

Quick summary

Flexible loan for up to 12 months with top up loans available. You can borrow up to 10% of your yearly turnover and interest costs start at 2% per month.

8 reasons to apply for a Iwoca Flexi-Loan

  • Designed for small businesses that struggle to access traditional bank lending.
  • Simple and quick application process. Most applications are approved in under 24 hours.
  • Simple fee structure with no hidden fees. You’ll only pay interest on your existing loan balance.
  • No fees for early repayments
  • Easy loan top-ups once you’ve paid off a third of the original loan.
  • Flexible repayment options
  • Dedicated account manager to help you with any queries.
  • Member of the Consumer Credit Trade Association

4 reasons not to apply for a Iwoca Flexi-Loan

  • Currently only available for businesses based in the UK, Germany or Poland
  • Flexi-Loans require a personal guarantee
  • You’ll need a minimum of 3 months’ trading history
  • No options for loans over 12 months

Revenue Based Loan (Merchant cash advance)

Iwoca’s Revenue Based Loan is a type of merchant cash advance that gives businesses quick finance of up to £50,000 or up to 2 months’ worth of revenue.

A merchant cash advance is a short term flexible loan designed for businesses with a high volume of card sales. Businesses are paid a lump sum that they then repay with future customer card payments. The card payment provider works directly with Iwoca to process and send loan repayments to them.

You can repay the loan using a pre-agreed percentage of your card sales. Businesses are charged a fixed fee of 6% to 12% rather than paying interest on the loan.

To apply for a revenue based loan you’ll need a bank account that links to Iwoca through open banking. Iwoca will use open banking to assess your loan application and see if you are eligible.

It may be easier to get accepted for this type of loan than some types of business finance. That’s because Iwoca will assess your application based on the sales in your bank account, rather than needing to see all your financial statements.

Take a look at our detailed article if you want to know more about how merchant cash advances work.

Quick summary

This is a short term loan that you repay using customer card sales. You can borrow up to 2 months’ worth of revenue and will be charged a fixed fee of 6% to 12% of sales.

4 reasons to apply for a Iwoca Revenue Based Loan

  • Designed for small businesses that struggle to access traditional bank lending.
  • Simple and quick application process. Most applications are approved in under 24 hours.
  • Simple fee structure with no hidden fees. You’ll pay a pre-agreed fixed fee rather than being charged interest.
  • Repayments are flexible and based on your level of sales.

4 reasons not to apply for a Iwoca Flexi-Loan

  • Currently only available for businesses based in the UK, Germany or Poland.
  • Expensive as you’ll be charged 6% to 12% of your sales.
  • Can only borrow a maximum of £50,000.
  • Only available for businesses with at least 3 months’ trading history.

IwocaPay (Buy now pay later)

IwocaPay helps businesses offer customers Pay Later options on their payments. Customers can choose between Pay Now or Pay Later options and click on a link to pay through IwocaPay.

The Pay Now option is interest free whereas the Pay Later option charges interest. You can choose for customers to pay interest at 3.33% per month or you can pay interest yourself at 3% per month.

If you use Xero accounting software you will be able to link it with IwocaPay. This means your customer payments process will be totally integrated with your accounts process, saving you time and money. Your invoices will automatically include an option so customers can pay using your IwocaPay account.

Quick summary

You can offer customers the option to spread their payments over 3 months. Iwoca will process the payments and charge you 3% interest per month on outstanding balances.

5 reasons to apply for IwocaPay (Buy now pay later)

  • Designed for small businesses that struggle to access traditional bank lending.
  • Simple and quick application process. Most applications are approved in under 24 hours.
  • Helps customers spread their spending so they can afford to shop with you more easily.
  • Fixed rate of interest and no hidden fees.
  • Spend less time on admin as invoices and payments are automatically matched.
  • No penalties if the customer doesn’t pay, Iwoca takes the hit.

3 reasons not to apply for IwocaPay (Buy now pay later)

  • Currently only available for businesses based in the UK, Germany or Poland.
  • Expensive as you’ll be charged 3% per month.
  • Only available for businesses with at least 3 months’ trading history.

How to apply

If you want to apply for an Iwoca business loan then it is a very simple application process that only takes a few minutes. Here is how it works:

  1. Sign up for an account with Iwoca
  2. Provide basic details about your business
  3. Link your business bank account with Iwoca or provide bank statements
  4. Give details of how much you want to borrow and for how long
  5. Wait for Iwoca to assess your application. This is usually within a few hours.
  6. Receive the funds into your bank account

Iwoca business loan Customer Service Reviews and Ratings

Iwoca business loan Ratings & Customer Reviews
Trustpilot customer service rating4.7 out of 5

How do existing customers rate Iwoca business loans? To find out, we've combed through hundreds of online customer reviews to find out how customers rate their experience with Iwoca business loans.

Iwoca business loan Trustpilot

Iwoca has earned an impressive 4.7 stars out of 5 at Trustpilot for its business loans. 90% of reviewers give Iwoca an "Excellent" 5 star rating and only 2% of the reviewers give Iwoca a “Bad” one-star review. This rating is based on nearly 5,000 reviews.

Many of the positive comments focus on how easy and efficient it is to apply for an Iwoca business loan. Customers were also impressed by the customer service and help they received with their applications. Here are some of the recent reviews:

"I get sent/come across many offers of funding but they never seem to deliver what they say they are going to. Iwoca proved me wrong and did exactly what they said they were going to do easily and quickly. Very refreshing!." Feb 2022

"Incredibly quick and efficient service overseen by an excellent dedicated manager for the kind of personal touch long forgotten by standard lending organisations. Am really impressed." Feb 2022

"I was in the market for a small business loan. Having searched the market I chose Iwoca mainly because they were prepared to work with me. Once I had completed the online application I received follow-up emails from Kieran Smith who provided me with valuable additional information. I wasn't ready to pull the trigger upon first applying so I requested an extension which was granted to me without fuss. Once I was ready to go, the full application process was very easy to manage, everything facilitated as it was either via the Iwoca website or a third party app for the usual ID verifications. All documentation was signed electronically again saving huge amounts of time and bother. Funds hit my account within seconds of signing the credit and guarantor agreement. Iwoca seems [sic] to have identified a real niche and as such provide fuss-free interactions which is just what small business owners [sic] want. Kieran was flexible and professional from the outset. Great attention to detail and very easy to work with. I would recommend Iwoca to any small business that requires some extra working capital.." Feb 2022

How to contact Iwoca

If you need to contact Iwoca then they have a handy website chat facility. Our researcher asked a question about business loans using the chat facility and a customer service assistant emailed her a detailed answer within 30 minutes.

Contact information for Iwoca business loan

  • General: 0203 778 0274
  • Applications: 0208 106 8821
  • Email: contact (at) iwoca.co.uk
  • Website chat: Click the arrow in the corner of the screen
  • Website support centre

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  • Borrow £1,000 - £750,000
  • Apply online in 5 minutes
  • Get approved in 24 hours
  • Borrow from 1 day to 5 years
Alice Guy

Alice Guy is a Suffolk-based business and personal finance writer. She trained with KPMG in London as a Chartered Accountant before working as a business analyst for Tesco Plc. Alice has personal experience surviving on a tight budget when she took time out to care for her young family. She loves to write about business finance, saving and investing—all the money stuff we were never taught at school.

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