Looking for a Flexible Business Loan?
What does iwoca have to offer?
Here at D H Business Support we are big fans of iwoca, the company that offers flexible loans to small businesses, and are proud to say we are working closely with them to help provide our clients with easy access to the finance they need to help grow their business.
If you’re looking for a business loan, we can put the loan in on your behalf using the data we currently hold on you and your business, saving you time.
Who are iwoca?
iwoca is one of the fastest-growing business lending services in Europe, with a focus on easing the struggles commonly faced when going to a bank for finance, such as long waits, endless forms and rigid criteria.
The company was set up by James and Christoph, who both previously worked in finance before quitting their jobs to set up a new type of lending service. They aim to make finance more accessible, helping small business owners to spend less time on paperwork and more time running their businesses.
They’ve now provided over £3 billion in business loans to over 50,000 businesses.
How are they different from a bank?
iwoca isn’t a bank. They’re an independent company providing accessible finance, custom-built for small businesses.
So, what kind of loans do they provide?
Flexi-Loans
With an iwoca Flexi-Loan you can borrow from £1,000 to £500,000 to use in your business, whether that’s to buy new stock or equipment, keep your cash flow smooth whilst waiting on an invoice or invest in growth.
You can borrow money for 1 day, or up to 5 years, depending on your circumstances and what suits you.
If you need more funds you can easily apply for a top up, and as your business grows so will your credit limit.
Revenue-Based Loan
With an iwoca Revenue-Based Loan you can borrow from £1,000 to £50,000, up to two times your monthly revenue. Repayments are a percentage of your monthly sales, with no interest, just a fixed fee of between 6-12%.
Choose what percentage of your revenue to repay each month, up to 25%, and they’ll take it automatically.
It’s a business loan that mirrors your turnover, so if you’re having a slow month or season, your repayments will slow down too, and any lost ground can be made up when you get back on track.
To apply you need to have been trading for at least the last 3 months and be making at least £1,000 in card and online sales combined. You will also need to share your banking data through Open Banking with Barclays, HSBC, Lloyds, Natwest or Santander.
iwocaPay
iwocaPay gives you and your customers more choice with how they pay, providing customers with an interest free ‘Buy Now Pay Later’ extended terms option.
You can read all about what iwcoaPay has to offer in our previous article here.
How long does it take to apply?
This is one of the things we love the most about Iwoca. It takes only 5 minutes to apply, and you’ll usually get a decision in 24 hours! Plus, it won’t affect your credit score to apply. This is leaps and bounds away from the typical process of applying for funding from a bank.
Once approved, you can transfer over as much as you need to your bank and the money will be received into your account within hours, easing any struggles you may be facing within your business.
How much will it cost to borrow?
iwoca keeps their pricing simple, only charging interest on your outstanding balance for the day you’re using your business loan. There are no hidden fees or long-term commitments.
Rates start at 2% a month for a Flexi-Loan, and there are no fees for repaying early!
You can use their simple price calculator on the iwoca homepage to find out how much you’re likely to be paying in interest depending on how much you want to borrow and for how long.
Who can borrow?
They accept applications from any and all business types, whatever their age of industry. You just have to:
• Be based in the UK
• Be a sole-trader, partnership or limited company
• Have basic business details to hand
• Provide bank statements from the past year, or link your account via Open Banking
Learn more about iwoca and whether one of their loans would suit you and your business on their website, and as always if you need any advice or help then don’t hesitate to reach out to us.
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