When each option usually fits
When Funding Circle usually fits
- Signal
- — You want a larger fixed-term loan, typically from ten thousand to several hundred thousand pounds.
- Signal
- — You are a limited company or LLP with at least twelve months of filed trading.
- Signal
- — You prefer fixed monthly instalments over up to six years.
- Signal
- — Total cost predictability and a structured schedule matter to you.
When iwoca usually fits
- Signal
- — You want a smaller facility, from around one thousand pounds, or a flexible credit line.
- Signal
- — Your business has under twelve months of filed accounts but clear recent trading.
- Signal
- — You need to draw and repay in chunks as cash flow allows.
- Signal
- — Decision speed and a same-day indication matter more than ticket size.
Side-by-side comparison
| Dimension | Funding Circle | iwoca |
|---|---|---|
| Amount range | From £10,000 up to £750,000 | From around £1,000 up to £1,000,000 |
| Headline product | Fixed-term business loan | Business loan and revolving Flexi-Loan credit line |
| Trading history | Typically twelve months minimum | Newer businesses considered; performance-led underwriting |
| Eligible entities | Limited companies and LLPs | UK limited companies and partnerships |
| Repayment structure | Fixed monthly instalments up to six years | Monthly repayments up to sixty months; flexible drawdown on Flexi-Loan |
| Decision speed | Decision as fast as one hour; funds typically within forty-eight hours | Often same day |
| Security and PG | Unsecured; personal guarantee required | Unsecured positioning; PG posture varies by case |
| Application | Online application; phone follow-up common on larger loans | Online application, open banking-led affordability checks |
| Typical fit | Larger one-off projects, expansion, refinance | Working capital, top-ups, short-term cash-flow gaps |
Shared considerations
- Both usually require a personal guarantee from a director or owner.
- Both decline on insufficient trading history, weak affordability or severe adverse credit.
- Neither is the right vehicle for asset purchase, property or invoice-led finance.
- Always verify current criteria and rates directly with the lender before applying.
Frequently asked questions
- Can I apply to both Funding Circle and iwoca at the same time?
- Yes, but each full application can trigger a credit search, and several footprints in a short window may affect scoring. Most UK SMEs compare indicative quotes first and only progress with the lender whose terms fit best.
- Which has lower pricing?
- Neither publishes a single headline rate. Pricing depends on trading history, sector, ticket size and term. Obtain indicative quotes from both and compare the total amount repayable across an identical term.
- Do either lend to sole traders?
- Funding Circle generally requires a limited company or LLP. iwoca considers partnerships and limited companies; sole-trader appetite varies by case. Verify directly with each lender before relying on either route.
- Are either FCA regulated?
- Both hold FCA authorisations for certain regulated activities, but their core SME business lending is unregulated commercial finance. Lendrly is not FCA-authorised and is not a credit broker — always check each lender's current status on the FCA register.