Business borrowing

Flexi-loan 

Flexible loans include a range of benefits that enable you to control how you withdraw and repay money. For example, with a flexi-loan there is no charge for early repayment, you borrow only when you need it and pay only for the time you have the funds, and top ups are available (subject to approval).

iwocaPay

iwocaPay enables sellers to be paid instantly, while customers can enjoy flexible repayment terms. Unlike invoice financing, buyers and sellers both benefit. iwocaPay automatically transfers payments to sellers, then handles customers’ future repayments and takes on any credit risk. Sellers benefit from a cost-effective, frictionless digital payment solution built on Open Banking, so they avoid expensive card fees or cumbersome bank transfers. (Read our article comparing different payment methods for businesses if you want to find out more.)

Peer-to-peer lending

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Peer-to-peer (P2P) is a popular form of financing that has taken off in recent years. It enables individuals to receive interest-based loans from other individuals who wish to support their businesses or ventures. Also known as social investing, it removes the middleman because banks and other financial bodies are not required. Borrowers and lenders typically connect through an online marketplace.

Alternative business funding

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Alternative business funding, or alternative finance, is a catch-all term for any form of non-traditional finance – be it peer-to-peer, crowdfunding, angel investing or other innovative funding models. It’s a way to source capital outside mainstream providers such as banks and capital markets and can be quicker and more efficient, especially for small to medium enterprises.

Business crowdfunding‍

Crowdfunding is a way to raise money for a business or a personal quest. It relies on investors (the ‘crowd’) to back the enterprise financially for a return on their money, or sometimes on a charitable basis. Borrowers can potentially connect with thousands or even millions of people who would like to contribute. There are four main types of crowdfunding: equity, reward, donation, and debt.

Small business loans ‍

A small business loan is a type of funding to help entrepreneurs meet their commercial goals and day-to-day operating needs. The loan is used to finance business activities and creates debt that must be repaid with interest. Business loans are typically for short-term investments, such as buying stock, or to help with cash flow management.

Business overdraft ‍

Like personal overdrafts, business overdrafts allow you to access more funds when your account is in the red. They are useful for preventing cash flow problems and for meeting short-term funding needs.

Small business grants ‍

Hundreds of small business grants are available from the UK Government and private sector organisations. Many business owners are unaware of all the options and how their business can qualify for funds, so it’s important to thoroughly research the field.

Start-up funding options‍

Start-ups have special needs and it’s sometimes difficult to know where to begin if you’re looking for finance. The good news is that there are now more options than ever for entrepreneurs, from crowdfunding to government-backed start-up loans and iwoca flexi-loans.

Vendor finance‍

Vendor finance is a form of B2B lending where a company (the vendor) lends money to a borrower so it can buy the vendor's products or services. It is useful when traditional business borrowing is difficult to access. Vendor agreements vary and interest rates can be high, but buyers normally have an established relationship with the vendor and don’t need to meet the often strict requirements of other lenders.

Franchise finance ‍

When you open a business and operate it under the name of an existing brand, you have a franchise model. Franchise finance covers the different types of lending to support franchisees, such as franchise business loans, franchise invoice finance, and franchise lines of credit.

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