The iwoca credit facility is a flexible short-term funding option. Once approved, you’ll be given a fixed credit limit and are then able to draw down as much of the facility as you need, when your business needs it.

Quick-fire facts

  • A simple, flexible facility that gives you access to credit when your business needs it.
  • Much quicker approval than for most other forms of finance, typically within 24 hours.
  • Repay your facility early for no extra cost to save on interest.

How does an iwoca credit facility work?

Once you’ve signed up at iwoca, you can get approved for a credit limit of up to £200,000 within 24 hours. Then just draw down as much as your business needs, whenever you need it. There are no application fees, set up fees, drawdown fees, or any other hidden fees. You’ll only ever be charged interest on the balance of the loan.

You can repay the facility in up to 12 months, but repaying early is completely free. As the interest on the facility is charged by the day, repaying early reduces the overall amount you’ll need to pay back.

So, how does it work? iwoca integrates with all the major banks, e-commerce platforms, payment processors and cloud-based accounting services. This lets us see your real trading data, allowing us to go far beyond a credit score when assessing your business for finance. That’s why we can make faster, fairer decisions than a traditional finance provider.

How much does an iwoca credit facility cost?

How much an iwoca credit facility will cost is directly related to the time you intend to keep the funds for, as interest is levied on a daily basis. Our interest rates vary between 2% and 6% per month, based on the profile of your business. Many of our customers “top-up” their loan back to their credit limit after some of their initial repayments have been taken.

And that’s it. Pretty simple, right? If you’d like to see what the repayment structure would look like for a specific amount, head over to our simple calculator.

Typical Example

Sam has found a great deal on some stock that he can sell in his electronics store for a huge profit. Because he’s buying a larger volume than usual, he doesn’t have the working capital to cover the payment. He uses iwoca to finance the payment of £10,000, and repays when he’s started to make a profit on the stock. Over 6 months at 4% per month, he pays £1000 in interest.

Frequently Asked Questions

Does getting a working capital facility require a personal guarantee?

An iwoca credit facility is an unsecured line of credit, meaning that the money you’ve borrowed is not secured against an asset. Instead, you’ll have to sign a personal guarantee, meaning that you’re personally and legally liable for repaying the money borrowed.

Can I top up my loan?

Yes you can. You’re eligible to apply for a top up once a third of your current facility with us has been paid back.

Are there any commitments?

No. It’s free to sign up and get approved – you only choose whether to go ahead once you have received an offer. Even then you are not tied in to your loan. Repay at any stage and you will have only paid interest up to that date.

Alternatives to a working capital facility

We think a credit facility is the best option for small businesses looking for short-term funding. However, you might want to compare it with some similar products on the market which you can find below. Most businesses that use an iwoca credit facility use it alongside other forms of longer term funding. Why not have a read of the other types of financing available to small businesses: