Pay as you grow loan
Pay as you grow is a flexible funding arrangement that allows a business to manage loan payments in line with their revenue. It can help businesses grow in a controlled way and survive challenging trading conditions.
We've stopped doing revenue based loans. If you’re looking for another form of business loan, our Flexi Loan could fill the gap.
- Apply in minutes
- Get an answer in 24 hours
- Borrow up to £1,000,000
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Loved by over 90,000+ small businesses since 2012
What is pay as you grow?
As a small business owner you’ll face different challenges as your business grows – one of the main ones being cash flow. A pay as you grow loan can help you stay afloat and improve financial planning and control.
In September 2020, the Chancellor of the Exchequer announced a government-sponsored Pay As You Grow (PAYG) scheme to help businesses repay the Bounce Back Loans they took out during the pandemic.
With a traditional loan, you’ll meet stricter terms when it comes to repayment deadlines, the amount that has to be repaid and the interest. With pay as you grow, the terms can be more generous. You’re often able to make flexible payments that match your business’ growth and revenue. You can also avoid heavy interest rates and fees. This can help you keep a tight rein on costs when margins are slim.
The benefits of a pay as you grow loan
Flexibility and financial security are the main benefits of a pay as you grow loan. It’s a funding model that’s particularly suited to businesses in the early stages of growth when revenue has yet to take off and can be erratic. Equally, it’s helpful for businesses that operate in markets that are unpredictable or seasonal, meaning revenue can be patchy.
Is this part of the Pay As You Grow scheme?
Pay As You Grow options were made available to businesses once they started to repay their Bounce Back Loans, a scheme that closed to new applications on 31 March 2021. Repayments begin 12 months after the first drawn down. Options include requesting an extension on the loan from six years to 10 years, at the same fixed interest rate of 2.5%, and reducing monthly payments for six months by paying interest only.
How to apply for a pay as you grow loan
There’s no paperwork and no need to compile statements or passwords. The application process for an iwoca Revenue-Based Loan is straightforward and you can be up and running after three simple steps:
- Just link your bank account via Open Banking, which is both convenient and secure. We’ll assess your revenue and get back to you with a decision within 24 hours.
- Choose how much of your revenue you want to repay each month.
- Once approved for a revenue-based loan, the funds will instantly be available through your iwoca account and you can start repaying based on future sales.
To be eligible for a revenue-based loan, you need to have been trading for at least three months. You’ll also need to generate at least £1,000 of monthly card and online purchases.
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How to get a business loan with iwoca:
Apply in minutes
It takes five minutes from start to finish. We've designed our flexible business loans with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We'll approve you based on your business performance. You then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy. As your business grows your credit limit will too.
The iwoca story
Over the past eleven years iwoca has grown from an ambitious fintech start-up to one of the fastest-growing and biggest business lenders in Europe. Now we're a team of around 400 in London, Leeds and Frankfurt working towards the goal of funding one million small businesses.
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Questions? We're here to help
Call us at 020 3778 0274 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
£3 billion+
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