When each option usually fits
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 an indicative decision and funds within hours rather than days.
- Signal
- — You prefer to draw down and repay in smaller chunks as cash flow allows.
When Funding Circle usually fits
- Signal
- — You want a larger 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 trading.
- Signal
- — You prefer fixed monthly instalments over up to six years and can wait around forty-eight hours.
- Signal
- — Total cost predictability and a structured repayment schedule matter to you.
Side-by-side comparison
| Dimension | iwoca | Funding Circle |
|---|---|---|
| Amount range | From around £1,000 up to £1,000,000 | From £10,000 up to £750,000 |
| Headline product | Business loan and revolving Flexi-Loan credit line | Fixed-term business loan |
| Trading history | Newer businesses considered; performance-led underwriting | Typically twelve months minimum |
| Eligible entities | UK limited companies and partnerships | Limited companies and LLPs |
| Repayment structure | Monthly repayments up to sixty months; flexible drawdown on Flexi-Loan | Fixed monthly instalments up to six years |
| Decision speed | Often same day | Decision as fast as one hour; funds typically within forty-eight hours |
| Security and PG | Unsecured positioning; PG posture varies by case | Unsecured; personal guarantee required |
| Sector mix | Broad UK SME mix; usual high-risk exclusions | Broad UK SME mix; usual high-risk exclusions |
| Application | Online application, open banking-led affordability checks | Online application; phone follow-up common on larger loans |
| Typical fit | Working capital, top-ups, short-term cash-flow gaps | Larger one-off projects, expansion, refinance |
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 iwoca and Funding Circle at the same time?
- Yes, but each application can trigger a credit search, and multiple footprints in a short window can affect scoring. Most UK SMEs compare indicative offers first and only progress to a full application with the lender whose terms fit best.
- Is iwoca regulated by the FCA?
- iwoca is authorised by the FCA for certain regulated activities, but its core business lending to UK SMEs is unregulated commercial finance. Funding Circle is similarly authorised for some activities. Lendrly is not FCA-authorised and is not a credit broker — always check each lender's current status on the FCA register.
- Which has better rates?
- Neither publishes a single headline rate; pricing depends on trading history, sector, ticket size and term. The honest answer is to obtain indicative quotes from both and compare the total amount repayable across the same 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 the lender before relying on either route.