iwoca review
iwoca is the pick when your borrowing need is uneven, because the Flexi-Loan works like a credit line rather than a lump sum: you draw what you need, pay interest only on that, and repay early without a penalty. It lends £1,000 to £1,000,000 over one day to five years, with interest from 1.5% a 30-day period and a representative 49% APR. The 1.5% is a best-case monthly rate, so the real cost is higher for most, but you only ever pay for what you use.
| Product | Flexi-Loan, a revolving business credit line |
| Borrow | £1,000 to £1,000,000 |
| Term | 1 day to 5 years |
| Rate | Interest from 1.5% per 30 days on the drawn balance; representative 49% APR |
| Repaid | Interest only on what you draw; repay early with no fee |
How the Flexi-Loan works
The Flexi-Loan is an approved limit you dip into as needed, not a lump sum that lands in your account. You draw what you want, interest is charged only on the balance you have actually taken, and you can repay early without a fee, which stops the interest. That structure suits seasonal income, a stock purchase you will clear in weeks, or bridging a late invoice.
iwoca lends from £1,000 up to £1,000,000 and decides fast, often within hours for smaller amounts, which is why it has become one of the most-used names in UK small-business finance.
What the rate really means
The from 1.5% per 30 days is a floor, the best-case rate, and it is a monthly figure rather than an annual one. iwoca's own representative APR of 49% shows the fuller picture, and under advertising rules at least 51% of accepted borrowers of £25,000 or less get that representative rate or lower. It is priced for short-term flexibility, not cheap long-term borrowing.
If you need a large sum over several years at the lowest rate, a term loan from Funding Circle or the market is usually cheaper. The Flexi-Loan earns its keep on flexibility: paying interest only on what you use, and only for as long as you use it.
The ledger, balanced
In credit
- Draw and repay flexibly, interest only on what you use
- No early repayment fee
- Fast decisions, £1,000 to £1,000,000
- Suits uneven or seasonal cash flow
In debit
- 1.5% per 30 days is a floor, and it is a monthly rate
- Representative 49% APR is high for long-term borrowing
- Better for short-term needs than cheap long-term loans
- Personal guarantee usually required
Questions people actually ask
What is iwoca's interest rate?
iwoca charges interest from 1.5% per 30 days on the balance you draw, which is a best-case monthly floor rather than a typical rate. Its representative APR is 49%, and at least 51% of accepted borrowers of £25,000 or less receive that rate or lower.
How does an iwoca Flexi-Loan work?
It is a revolving credit line, not a lump sum. iwoca approves a limit, you draw from it when you need funds, and you pay interest only on the amount drawn. You can repay early with no fee, which stops the interest, so it suits uneven or seasonal cash flow.
Is iwoca a good lender?
For short-term, flexible working capital it is one of the strongest UK options, because you only pay for what you use and decisions are fast. For a large sum over several years it is usually dearer than a term loan, so match the product to the need.
Rates and limits verified 5 July 2026 against iwoca.co.uk. Business lending is not covered by the FSCS, and lending to a limited company is not regulated like a consumer loan, so confirm the terms with the lender before you apply. We may earn a commission through links on this page.