Business borrowing is a way for start-ups and established companies to meet day-to-day operating costs and fund growth. Businesses have a wide variety of borrowing options, from traditional bank loans to alternative funding methods such as small business loans, asset finance and peer-to-peer lending. With so many ways to borrow money for your business, you’re no longer limited to traditional finance. Picking the most suitable lender will depend on how much you want to borrow, what you need the money for, and what the repayment terms are.
- Borrow up to £500,000
- Repayment over 24 months
- No repayment fees
- Top ups available
Loved by over 90,000+ small businesses since 2012
Flexible business borrowing options with iwoca
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 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.)
How does business finance work at iwoca
Apply in minutes
It takes five minutes from start to finish. We're designed with small businesses in mind, so we'll just need the basics about your business to make a decision.
Use your funds
We'll approve you based on your business performance. You then transfer as much as you need to your bank account, and the funds will typically be in your account in hours.
Repay or top up
We don't charge early repayment fees: we only charge interest for the days you have the money. If you need more funds, applying for a top up is easy. As your business grows your credit limit will too.
Fund your future with iwoca's business borrowing options
No early repayment fees
If you want to repay early that’s great. We’ll never charge a fee for that. In fact, more than 20% of our customers repay ahead of schedule in their first six months.
We’ve designed our application process to be as slick as possible: link your bank account and get going in minutes.
No hanging around
Once you’re approved, we’ll ping the money straight to your account. And if you need more later, you can apply for a top-up.
With iwoca you can:
- Borrow from £1,000 to £500,000 over 24 months
- Get a decision in 1 working day
- Repay early with no fees
Other business borrowing options
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, 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.
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.
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.
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.
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-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 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.
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.
Read our in-depth guides about the world of business finance, designed to help you achieve more.
The iwoca story
Over the past eleven years iwoca has grown from an ambitious fintech start-up to one of the fastest-growing and biggest business lenders in Europe. Now we're a team of around 400 in London, Leeds and Frankfurt working towards the goal of funding one million small businesses.
Questions? We're here to help
Call us at 020 3397 3375 from Monday to Friday (9am - 6pm). We can take your business loan application over the phone, or answer your questions about applying online.
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