Check if you qualify for a business loan in minutes
Borrow £1,000 - £1 million with flexible repayments. Our business loans can be used to buy new stock, invest in growth plans, or just keep your cash flow smooth.
- 24 hours to get a decision
- Repay early with no fees
- Borrow for 1 to 5 years
How to apply for a business loan
Apply in minutes
It takes five minutes from start to finish for an iwoca business loan. We're designed 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 can then transfer as much as you need to your bank account, and the funds will typically be in your account in hours. We'll only charge interest for the days you have the money.
Repay or top up
You can overpay, or fully repay your loan at any time and we will not charge you any early repayment fees. If you need more funds, applying for a top up is easy. As your business grows your credit limit can grow too.
Benefits of using a business loan
- Improved cash flow: Get immediate capital to smooth out fluctuations and keep your business moving forward.
- Growth and expansion: Fund new equipment, additional inventory, or hire key staff to expand operations.
- Build credit history: Regular repayments help build your business credit score, potentially enabling better borrowing terms in the future.
- Keep control: Retain full business ownership, maintaining complete control over your decisions, unlike equity financing.
Business Loan Calculator
Use our interactive business loan calculator below to learn about the potential cost of your loan.
Our business loan interest rates start at 1.5% a month, with no fees on 12-month loans.
Loans longer than 12 months may incur a 5% or 6% fee.
This loan calculator is only an example, your actual rate and repayment amount for your business loan will vary based on your circumstances. Here’s another example: if you borrowed £10,000 for 12 months at 49% representative APR, with an interest rate of 40% p.a. (variable), then, all in all, the total amount you’d repay would be £12,294.
Fund your future with an iwoca business loan
No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.
Easy application
We’ve designed our application process to be as slick as possible. You can complete a simple, online application in minutes.
No hanging around
We'll send the money straight away once you draw down your funds. And if you need more later, you can easily apply for a top-up.
Business loan eligibility criteria
When you apply for an iwoca business loan, we’ll consider:
- Business structure and applicant age: We lend to UK-based limited companies and limited liability partnerships. We do not lend to sole traders. Applicants must also be at least 18 years old.
- Trading history: We accept applications from businesses of all sizes, from new startups to established companies.
- Creditworthiness: The personal credit scores of your business's directors or owners will be considered. However, at iwoca, your credit score isn't the only thing we look at; we assess your business's broader health and potential.
- Financial health & performance: We'll look at your revenue, profitability, and overall cash flow. We may also check for previous defaults on other debts or outstanding County Court Judgments (CCJs).
- Loan purpose and affordability: You'll need to specify why you need the business loan and demonstrate that your business can comfortably manage the repayments over the loan term.
Use your business loan for...
With iwoca's reasonable rates and amazing staff, we were able to quickly obtain a loan to purchase equipment before our grand opening. Sophie was very supportive and walked us through the process.
Nails and Cocktails
Cecilia
iwoca helped to stave off a shortfall when our first rent payment was due, I didn’t have enough to pay for everything because the centre was so new. Applying for funding through iwoca was very straightforward.
Aldershot Soft Play Centre
Paul
We had an opportunity to stock a unique bike brand that nobody else in the country was selling... Getting funding from iwoca was a big step for us but it made a massive difference.
Hub Vélo
Mike
We use iwoca finance for our advertising and it always generates an amazing return on investment. iwoca is my go-to when I require quick funding to help me run successful marketing campaigns.
Rebecca Lockwood (trainer for female entrepreneurs)
Rebecca
Loved by over 150,000+ small businesses since 2012
Business Loan FAQs
Here are the top questions we receive about our business loans. To see our full list of FAQs, check out our dedicated FAQs page.
How much does a business loan cost?
The cost of our business loans starts at 1.5% per month. We charge no fees on 12-month loans, but longer term loans may incur a fee.
What is the difference between a secured business loan and an unsecured business loan?
Unsecured business loans do not require any collateral and are typically quicker to arrange than secured loans, although the lender may require a personal guarentee. iwoca's business loan is an example of an unsecured loan.
Secured business loans require you to offer business assets (collateral) against the loan which the lender may seize if you default. Although they tend to have lower interest rates and allow you to borrow more compared to unsecured loans, they often take much longer to arrange.
What is a good credit score to get a business loan?
A good credit score varies depending on the rating agency in question, but generally the higher your score, the lower your perceived risk. It’s worth noting, however, that your credit score alone is not enough to determine your eligibility for a business loan.
We consider many other factors, including financial history, business performance and previous debt defaults. We also look to see if you have a solid customer base with predictable revenue.
How to get a business loan with bad credit?
Securing a business loan with bad credit can be challenging but not impossible. Here's how you can improve your chances:
- Understand your credit score: Before applying for a loan, understand your credit score and what factors led to it. This insight can help you plan on how to improve it
- Improve your business’s financials: Showing that your business is profitable or even showing an improvement in its financial health can make you a more attractive loan candidate.
- Consider alternative lenders: Alternative lenders like iwoca tend to have more flexible requirements than the banks. We consider multiple factors when assessing a loan application, not just your credit score.
When do I need to start repaying my business loan?
iwoca business loans follow a monthly repayment schedule, with minimum repayments due once per month. Your first repayment will be due 30 days after drawing down the loan.
Can I take a new loan once my first loan has ended?
Absolutely! You don't even have to wait until the loan has ended, as you'll also be eligible to apply for a top up once you’ve repaid between 15-33% of your loan, depending on the loan term. We’ll just need some fresh info about your business to make a decision.
What documents do I need for a business loan application?
Unlike banks, we don't need to see a business plan or anything like that.
For many customers, we only need to see a few recent bank statements to make a decision. We may also ask for VAT returns and company accounts on larger, more complex applications - but that's it.