When each option usually fits
When iwoca usually fits
- Signal
- — You want fixed monthly instalments on an unsecured term loan or a flexible credit line.
- Signal
- — Revenue is spread across invoices, bank transfers or mixed channels — not card-led.
- Signal
- — You have at least a few months of clean trading and reasonable directors' credit.
- Signal
- — You prefer an online application with open banking checks.
When Capify usually fits
- Signal
- — Card or POS takings make up most of your revenue.
- Signal
- — You want repayments to flex with daily sales rather than land as a fixed instalment.
- Signal
- — Filed accounts are thin but card processing history is consistent.
- Signal
- — You operate in hospitality, retail or services where seasonality is sharp.
Side-by-side comparison
| Dimension | iwoca | Capify |
|---|---|---|
| Headline products | Unsecured business loan; revolving Flexi-Loan | Merchant cash advance; short-term business loan |
| Repayment model | Fixed monthly instalments; flexible drawdown on Flexi-Loan | Percentage of daily card takings on the advance |
| Pricing model | Stated APR per agreement | Factor rate on the advance; APR on the term loan |
| Typical amount | From around £1,000 up to £1,000,000 | Typically £5,000 to £500,000, sized to card turnover |
| Trading history | Newer businesses considered; performance-led underwriting | Three to six months card processing often enough |
| Sector fit | Broad UK SME mix; usual high-risk exclusions | Hospitality, retail, services and other card-heavy traders |
| Decision speed | Often same day | Often within twenty-four to seventy-two hours |
| Security and PG | Unsecured; PG posture varies by case | Future card receipts assigned; PG common |
| Application | Online with open banking | Phone-led with online intake |
Shared considerations
- Both typically take a personal guarantee from a director or owner.
- Both will look at bank statements, existing debt and trading evidence.
- Advance pricing tends to run higher than a comparable unsecured loan — model the total cost.
- Both are unregulated business-purpose finance and subject to lender underwriting.
Frequently asked questions
- Which is cheaper, iwoca or Capify?
- Neither publishes a single headline rate. An iwoca term loan is typically priced as an APR; a Capify advance is priced as a factor rate. On the same ticket and duration, the term loan tends to come in lower in absolute cost, but the advance prices in sales-linked flexibility and lighter underwriting.
- Can I have an iwoca facility and a Capify advance at the same time?
- Sometimes, but each lender will reassess affordability with the other in place. Disclose existing facilities up front. Stacking products on similar revenue can stretch repayments and trigger a decline.
- Which is better for short trading history?
- Capify tends to lean on card processing data, which can work where filed accounts are thin. iwoca considers newer businesses too, but usually wants performance evidence through bank feeds. Outcomes depend on lender criteria.
- Are either FCA regulated?
- Both hold FCA authorisations for certain regulated activities, but their core SME lending is unregulated commercial finance. Verify each lender's current status on the FCA register before relying on either.