Iwoca Business Funding Review

Iwoca is a fast and reliable business finance option for businesses in the UK. Regardless of the kind of business you are operating, you can get business funding from Iwoca. Iwoca does not require a lot of paperwork to apply for a business loan. You also don’t have to wait in the long queues to access business funding. Iwoca does not have hidden fees and there are no penalties for early payments.

Iwoca Business Loan

  • Iwoca offers two types of loans; Flexi loans with a loan duration of 12 months and Business loans with a loan duration of 3 years to 5 years.
  • Iwoca only charges interest rate (between 2% and 6% per month) for the days you have the funding. It does not charge prepayment penalty fees and you can reduce your interest rate by repaying your loan early.
  • Iwoca loan amount ranges between £1000 and £200,000.

Iwoca terms and conditions stipulate that you are liable for 5% interest per month on your outstanding balance, which is 60% per year.

What is Iwoca?

Iwoca stands for Instant Working Capital. Iwoca is a business lending platform that provides small businesses with flexible credit. Iwoca mainly works with small and online businesses thereby allowing them to apply for business loans online through their website.

Iwoca was founded in 2012 by James and Christoph to help small businesses access funding without much paperwork. They were both working in finance but quit their jobs to help small businesses that were left out by big banks access loans.

How Iwoca Works

Iwoca makes the process of applying for business loans very easy and straightforward. You just need to go through a few steps to apply for the loan and if you qualify, your loan request is approved within a short period. To apply for Iwoca business loan, follow these simple steps.

  • Sign up for an account through Iwoca website
  • Fill in your business details and provide a link to your business account. You also need to upload the required documents like VAT returns and the business’s bank statements.
  • Indicate how much money you want to borrow. You can choose when you want to have the funds available in your account.
  • A manager will assess your loan request and the information you provided to determine if you qualify for the loan. It does not take long to get feedback.
  • Iwoca will send you an offer and when you accept it, funds will be deposited into your business account.

Iwoca Business Loan Requirements

To apply for Iwoca business loan, you need to provide the following documents:

  • Company accounts
  • Business VAT returns
  • Business bank statements

Iwoca Business Loan Features

Iwoca business loans have the following features:

  • Interest rates. Iwoca loan interest rates depend on individual circumstances. However, interest rates range between 2% and 6% per month.
  • Amounts. Iwoca provides business loans ranging between £1000 and £200,000 depending on your business size.
  • Loan duration. You can repay your business loan within 12 months and you can repay it early without any penalty fees. You are only charged interest rates for each day you have the funding.
  • Flexible loans. You can repay your loans when you have the money. You can pay your loan back early or top it up during the life of your loan. You will not be charged a penalty for prepayment.

Where is Iwoca Based?

Iwoca is based in London along Tottenham Court Road and it provides business loans to small and online businesses in the UK.

Iwoca Products

Iwoca fees depend on which products you are using. Iwoca offers three types of products, Flexi Loan, Recovery Loan, and IwocaPay.

  • Flexi Loan. For Iwoca’s Flexi Loans, the loan duration is 12 months and you won’t have to pay any fees apart from the interest rates.
  • Recovery Loan. You can apply for Iwoca Recovery Loan from £25,001 to £750,000 over 5 years with no early repayment fees. No personal guarantee on loans below £250,000.
  • iwocaPay. It is a new product that is meant to help new businesses manage their cash flow by giving them extended payment terms while they can also pay their suppliers upfront.

Linking Xero Account

You can link your Xero account and share your business data with Iwoca. Some of the data you can share with Iwoca using Xero account include bank statements. You can automate your accounting by allowing Xero to add a transaction whenever you make a repayment. You can remove Iwoca from accessing your Xero account anytime you want to.

How to Make Iwoca Repayments

You can repay your Iwoca loan through automatic payments. Funds will be deducted from your registered debit card. Minimum repayments can be made either weekly or monthly. You can choose which repayment schedule you want. You need to ensure that your bank account has sufficient funds on your repayment date. You can also repay your loan early through a bank transfer or a debit card.

Iwoca Business Loan Interest Rates

Iwoca interest rates vary depending on your circumstances. However, the loan varies between 2% and 6% per month. All loans have variable interest rates and Iwoca does not charge inters rate without your consent. Once money has been deposited in your account, you have 12 months to repay the business loan.

Is Iwoca Secure?

Iwoca is very secure and when you link your online accounts with their automated systems, they never see your passwords. Your data is also secure and they don’t share any of your data with third parties.

Iwoca Reviews

At the time of writing this Iwoca review, the company has a 4.6 rating from over 4,700 users on Trustpilot. 90% of users rated the loan service excellent while 2% rated it poor. Iwoca responds to almost all negative reviews.

Advantages of Iwoca

  • Flexi Loan from £1,000 to £200,000 over 12 months
  • Apply online in 5 minutes and get a decision within 24 hours
  • No hidden fees, rates starting from 2%
  • Have help on hand with a dedicated account manager
  • 4.6 Stars on Iwoca Trustpilot page with more than 4500+ reviews

Alternatives to Iwoca Loans

If you want to access business loans, you can also use alternative business loan brokers like:

Conclusion on Iwoca Funding

Iwoca offers unsecured loans and you don’t need to provide an asset as collateral. You can apply for Iwoca Flexi Loans or Iwoca business loans. You can repay Iwoca loans early and you will not be charged prepayment fees. When you repay your loan, you can qualify for another loan and you can have interest rates reduced and your credit limit increased.

FiFi Finance is a financial website. We are an online resource for everyone who wants to learn more about financial matters. We provide information on topics such as bank accounts, investments, loans, and personal financial management. Our mission is clear; we intend to help to improve financial literacy, by making finances work for everyone. Your feedback is appreciated. Read more about us.