Instant decisions up to £50,000

Borrow £1000-£200,000 with flexible repayments. Our small business loans can be used to buy new stock, invest in growth plans, or just keep your cash flow smooth.

Because we’re designed specifically for small businesses, our small business loans work like you do: they’re fast and faff-free.

Because we’re designed specifically for small businesses, our small business loans work like you do: they’re fast and hassle-free.

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.

Easy application

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.

How our small business loans work

Here are some questions you could ask yourself about how small business loans work. If there’s anything we haven’t covered here, check our FAQ

A small business loan is a form of finance to be used for business activities. As with most loans, it requires creating debt, which is then repaid with interest. Generally, business loans for small businesses are for short term investments, like extra stock. Or, business owners use them to help with cash flow, like if they're waiting on an invoice.

A small business loan works as an assessment by a lender of a borrower’s creditworthiness which, if successful, is followed by releasing funding into your business bank account. You will then be expected to repay the loan – often in monthly installments – plus interest.

The exact percentage of interest the lender charges on the money received by the borrower is the ‘interest rate’ of the small business loan and is often expressed as an annual percentage rate (APR). This rate will vary based on your business’ circumstances and between different lenders, based on their risk appetite and the perceived level of risk involved in lending to your business.

Whether you should or shouldn't take out small business loans is a matter of your personal attitude towards debt. To explore the topic further, we asked Alexander X. Douglas – lecturer in philosophy at the University of St. Andrews – to outline the history and philosophy of debt, including arguments on both sides of the fence. On a more practical level, it’s useful if business owners have a robust idea of the health of their business before looking into finance options like small business loans. To this end, we’ve put together a health check tool you can use if you’d like to look into your business’ health further.

It takes 5 minutes to apply for an iwoca small business loan and in almost all cases you'll get a decision in 24 hours.

Applying for a small business loan


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.

The process has been easy, uncomplicated and very quick. Their service is excellent with regular contact and support. I highly recommend this company for any business that needs finance.

The process has been easy, uncomplicated and very quick. Their service is excellent with regular contact and support.

Tim Law - Simply Plants

We keep our prices simple

Simple Pricing

We’ll only charge interest on your outstanding balance for the days you’re using your business loan – no hidden fees, no long-term commitments. Our business loan rates start at 2% a month for a Flexi-Loan, depending on your business.

6 monthly repayments of £18,662

Total repayment of £111,973(3.33% interest rate per 30 days)

Borrow up to £500,000

For up to 12 months

Need help? call us

This loan calculator is only an example, your actual rate for your business loan will vary based on your circumstances. Here’s another example: if you borrowed £10,000 for 12 months at 49% representative APR, with an interest rate of 40% p.a. (variable), then, all in all, the total amount you’d repay would be £12,294.

Small business loans FAQs

Here are some questions you could ask yourself about small business loans eligibility. If there’s anything we haven’t covered here, check our FAQ

How exactly you qualify for a small business loan will vary dramatically depending on the lender you approach, the type of finance you’re trying to access, and the amount of money you’re requesting. However, as a rule of thumb, loan providers often consider more than 10 factors relating to you, your business and its performance. It’s also worth bearing in mind that – generally speaking – many lenders aren’t keen to loan more than 20% of your business’ annual turnover. Some of our qualifying factors are:

  • How well your business has been doing historically, usually within the past year, but sometimes up to five years
  • Your experience in business directorship
  • Your personal credit score and payment history
  • Your business credit score and payments history
  • The supply chain of your business and market outlook
  • Your market segment and quality of assets
  • The quality of your customer reviews

If you do not already own a business, it’s very unlikely that you’ll be able to take out a small business loan to acquire a company. If, however, you’re a business owner looking to buy another business entirely, some lenders may consider lending to you, if you can demonstrate that buying the business will not negatively impact your ability to repay the funds.

Some lenders will also allow a business owner to take an unsecured loan to help buy out a co-owner. Sometimes such lenders will want to see a Share Purchase Agreement (SPA) drawn up, to demonstrate you are serious about the move. If you’re in doubt, contact your preferred lender directly and ask them what situations they’re willing to cover.

Unfortunately a credit score on its own usually isn’t enough help to know whether or not you’ll be eligible for a business loan, as most business lenders use a lot of additional criteria before making any assessment of creditworthiness, or what interest rate they’ll charge you.

Instead, the main thing to know is whether or not your business is healthy, for example, whether it’s defaulted on debt in the past, has any outstanding County Court Judgments (CCJ) against it, as well as whether it has a solid customer base and a steady revenue stream. For those looking to learn more on the topic, we’ve put together a business health check tool.

Business loan insurance is not a legal requirement, but some owners consider taking it out to help give them peace of mind. This is because, if any loans are outstanding and the business owner dies or falls seriously ill, the impact on that business (and its employees) can be very serious.

As a result, some insurance providers offer cover in the form of a lump sum that is paid out when a specified director passes away or – in more comprehensive policies – if that person falls critically ill. The insurance lump sum will usually be the same amount of money as what’s outstanding on the loan. In return for this, you’ll be expected to pay regular premium payments to the insurance provider.

Whether you do or do not take out small business loan insurance is entirely down to you, although as there’s a regular cost, most owners will discuss the decision with the other business directors before taking out such insurance.

Customer support


We're here to help

Small business loans are all we do, so you'll get straight through to someone who can help, like Lisa – we're not fans of hold music. Call us from Monday to Friday (9am - 6pm). We accept applications over the phone.

Apply now

iwoca Ltd, 247 Tottenham Court Road, London, W1T 7QX

iwoca Limited is authorised and regulated by the Financial Conduct Authority (reference number: 723378) in relation to regulated credit agreements and are a registered account information service provider (reference number: 791804). We're also registered with the Information Commissioners Office in relation to the processing of personal information (registration number: Z3007540). iwoca Limited is incorporated in England and Wales (company number: 07798925). Our registered office is 10 Queen Street Place, London, EC4R 1AG.