Reach new heights with a small business loan

Borrow £1000-£500,000 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.

  • 24 hours to get a decision
  • Repay early with no fees
  • From 1 day to 24 months
Apply nowSee how much you could get

Applying won't affect your credit score

wedge coral iwoca
red iwoca piggy bank

Loved by over 90,000+ small businesses since 2012

light blue circle

How do small business loans work

offer stage iwoca
  1. 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.

  2. 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.

  3. 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.

Apply now

Applying won't affect your credit score

How to apply for a small business loan?

coral wedge iwoca
line arc

Frequently asked questions

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

What are the criteria to apply to a small business loan?
plus sign

We're happy to consider a wide range of businesses ranging from new startups to established companies. However you must have a UK-based business and operate as a limited company or a partnership. Startup businesses are limited to a maximum credit limit of £10,000.

How long do I have to repay?
plus sign

Our maximum term is for up to 24 months but you can always repay early if you don't need the funding for that long. We only charge interest for each day you have the funding so making early repayments is a great way to reduce the total amount of interest you will pay.

If I apply to a small business loan, are there any commitments to take the funds?
plus sign

No. It’s free to get a quote - you only choose whether to go ahead once you have received an offer. Even then if you want to repay early, you can with no extra fee, you'll only pay interest for the time you have the funds.

Can I take a new loan once my first loan has finished?
plus sign

Of course. We will renew your offer once your loan has ended, assuming your circumstances have not changed. If your business has grown we may even be able to increase your credit limit or reduce your interest rate. Then it’s just a matter of logging in to your account to withdraw the funds.

Fund your future with a small business loan

We keep our prices simple

We’ll only charge interest on your outstanding balance for the days you’re using your business loan – no early repayment 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 £1,120

Total repayment of £31,685(3.33% interest rate per 30 days)

Borrow up to £500,000
For up to 24 months
Borrow £0000

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.

Down chevron to scoll to the next section
line arc

Small business loan 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

Can I get a business loan to buy a business?
plus sign

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.

What is a good credit score to get a small business loan?
plus sign

Unfortunately, your credit score alone is usually insufficient to determine your eligibility for a business loan. Most lenders consider many factors, including creditworthiness and interest rates.

The main thing to know is if your business is healthy. This includes checking if it has defaulted on debt, has any outstanding County Court Judgments (CCJ), and has a solid customer base with steady revenue. For those looking to learn more on the topic, we’ve put together a business health check tool.

Do I need to take insurance on a small business loan?
plus sign

Business loan insurance is not a legal requirement, but some owners consider taking it out to help give them peace of mind. If the business owner dies or becomes seriously ill, any outstanding loans can have a significant impact on the business and its employees.

Some insurance providers offer a lump sum payment when a director dies or 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.

Are small business loans secured or unsecured?
plus sign

A greater part of small business loans are unsecured since, as a small business, you may not have enough collateral to offer the lender as security against non-payment. If you'd like to learn more about the difference between these two forms of loans, have a look at our unsecured business loans article.

There are some secured business loans provider though, so it's important to compare the different options available.

When do I need to start repaying my small business loan?
plus sign

Minimum repayments must be made either weekly or monthly, depending on the repayment schedule you agree to when requesting funds. With a monthly repayment schedule you will repay the first month 30 days after drawing down.

How do I get a small business loan from the government?
plus sign

Securing a small business loan from the government can be a beneficial way to boost your business's financial health. To get such a loan, you'll need to follow several steps:

  • Find the appropriate government loan: the UK government has different loan programs for businesses. For new businesses, there is the Start Up Loans scheme. For more established businesses, there is the Enterprise Finance Guarantee. Understand the eligibility criteria and terms for each before choosing.
  • Government-backed lenders usually need a detailed business plan that explains your business model, financial projections, and how you'll use the loan money.
  • Fill out the application: once you've identified the right loan and prepared your business plan, you'll need to fill out the application form. This typically includes details about your business, financial information, and your personal information.
  • Wait for approval: after submitting your application, the lender will review it. This process can take several weeks, and if approved, you'll receive the loan agreement to sign. After the loan agreement is signed and returned, the funds are typically deposited into your bank account.

Government-backed loans have lower interest rates and flexible terms, but they must be repaid. Defaulting can have serious consequences. It's crucial to understand the terms and conditions fully before committing to such a loan.

How much is a small business loan?
plus sign

The cost of a small business loan in the UK can vary significantly based on the type of loan, the loan amount, the term length, and the interest rate. For instance, our Flexi-Loan goes from 2% per month.

How to get a small business loan with bad credit?
plus sign

Securing a small business loan with bad credit can be challenging but not impossible. Here's how you can improve your chances:

  • Understand your credit score: before applying for a loan, understand your credit score and what factors led to it. This insight can help you plan on how to improve it
  • Improve your business’s financials: showing that your business is profitable or improvement in its financial health can make you a more attractive loan candidate
  • Consider alternative lenders: if traditional banks have turned you down, consider alternative lenders. they often have more flexible requirements and are more willing to work with businesses that have poor credit
  • Provide collateral: if you have assets that can be used as collateral, this can increase your chances of securing a loan
  • Seek a co-signer: if you can find someone with a strong credit score to co-sign the loan, lenders may be more willing to approve your application. However, this can be risky as the co-signer is equally responsible for repaying the loan.

Remember, obtaining a loan with bad credit can come with higher interest rates. It's essential to weigh your options carefully to avoid further financial strain.

What documents are needed for a small business loan?

The process will very much vary from one lender to another. If you’re interested in taking a loan with us, have a read through how to get a business loan with iwoca. We tried to make the process as transparent and hassle-free as possible.

How to get a small business loan without collateral?

That’s a good question and the answer is simple: look for an unsecured business loan

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.

Learn more
picture of the iwoca founders on a red couch
customer success advisor

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.

£3 billion+

approved small business loans

Excellent trustpilot score for iwoca


businesses approved

bbc logo
financial times logo
the telegraph logo
business insider logo
bloomberg logo
evening standard logo

Let’s get started

Applying won’t affect your credit score

Need help? Call us:

Get approved in 24 hours

Applying won’t affect your credit score

What's next?

  • Apply in 5 minutes
  • Meet your account manager
  • Get money in the bank in hours

Need help? Call us: