iwoca vs Capify: Business Loan Comparison
iwoca vs Capify compared for UK businesses: loan types, amounts, speed, repayment style and who each suits. See the differences and compare the market.
The short version
- iwoca is a fintech lender best known for the Flexi-Loan, a revolving credit line where you draw what you need and pay interest only on the balance you use.
- Capify is one of the longer-established alternative lenders in the UK, offering merchant cash advances and fixed business loans repaid through regular instalments.
- iwoca tends to suit businesses wanting flexible, top-up access to funds with no early repayment fees; Capify tends to suit turnover-led businesses, including those with strong card takings.
- Both fund quickly (often within a working day or two) and both look beyond credit score alone, weighing trading performance and cash flow.
- Cost is personalised for each, so never assume one is cheaper. Confirm current rates and fees directly with the lender before deciding.
iwoca and Capify are both unsecured-leaning business lenders that serve small and medium UK firms which high-street banks can be slow to help. People compare them because both promise fast decisions and both look at real trading data rather than relying on a credit score alone.
The difference is in structure. iwoca leans towards flexible revolving credit you can top up and repay early without penalty, while Capify leans towards turnover-based advances and fixed-term loans that suit businesses with steady or seasonal takings. Which fits you depends on how your revenue behaves and how you prefer to repay.
Compare them at a glance
The chart below compares the two on non-price measures only: how much you can borrow, how long you repay over and how quickly funds typically arrive. It deliberately excludes rates, because cost is quoted individually and depends on your profile.
The two lenders in detail
iwoca
iwoca is a technology-led lender founded in 2012 that focuses on small business credit. Its flagship product, the Flexi-Loan, is a revolving facility: you are approved for a limit, draw funds as you need them, and pay interest only on the amount outstanding. It also offers iwocaPay, a business-to-business checkout and pay-later tool. Applications are largely online, decisions can come in minutes to hours, and it commonly serves sole traders and limited companies alike.
Strengths
- Revolving Flexi-Loan means you only pay for what you draw, useful for uneven cash flow.
- No fees for repaying early, so short-term use can be cost-efficient.
- Fast, largely automated online decisions with open banking used to speed things up.
- Considers newer and smaller businesses that banks may decline.
Watch-outs
- Flexi-Loan terms are relatively short, so it suits working capital rather than long-term investment.
- Pricing is personalised and can be higher than a bank facility for some profiles.
- A personal guarantee is commonly required from directors.
- Limits offered may be lower than requested until you build a track record.
Capify
Capify is one of the more established alternative finance providers operating in the UK, with a history in the merchant cash advance market stretching back over a decade. It offers two core products: a merchant cash advance, where repayments flex as a percentage of your card or overall takings, and a fixed-term business loan repaid through regular (often daily or weekly) instalments. Capify typically looks for a minimum trading period and a minimum monthly turnover, which makes it a natural fit for established, revenue-generating firms.
Strengths
- Merchant cash advance repayments rise and fall with takings, easing pressure in quiet periods.
- Well suited to retail, hospitality and other card-heavy businesses.
- Long operating history and experience with turnover-led lending.
- Decisions weigh trading performance heavily, not just credit score.
Watch-outs
- Minimum turnover and trading-history requirements can exclude very new firms.
- Frequent (daily or weekly) repayments need careful cash-flow planning.
- Cost is expressed as a factor and personalised, so compare the total repayable carefully.
- A personal guarantee is commonly required.
Side-by-side comparison
The table sets out the practical differences on structure, eligibility and typical use. Figures reflect what each lender generally publishes and can change, so treat them as a guide rather than a quote.
| Feature | iwoca | Capify |
|---|---|---|
| Core products | Flexi-Loan (revolving credit), business loan, iwocaPay | Merchant cash advance, fixed-term business loan |
| Typical amounts | Around £1k to £1m across products | Around £5k to £500k |
| Security | Usually unsecured, personal guarantee common | Usually unsecured, personal guarantee common |
| Repayment style | Flexible drawdown, interest on the balance used, no early repayment fee | Fixed instalments (loan) or a percentage of takings (advance) |
| Typical repayment term | Up to around 24 months on Flexi-Loan | Commonly around 6 to 12 months |
| Typical speed | Often a decision in minutes, funds within about 24 hours | Fast, commonly within around 24 to 48 hours |
| Eligibility slant | Newer and smaller businesses considered | Established, turnover-generating businesses, often with card takings |
| Best for | Flexible working capital and top-ups | Turnover-led funding, especially card-heavy trades |
Cost is deliberately not compared here. Both lenders price individually against your turnover, trading history, sector and risk profile, and iwoca quotes interest while Capify commonly quotes a factor. The only reliable way to compare the true cost is to look at the total amount repayable on a like-for-like offer, which is why you should confirm current figures directly with each lender before committing.
Where iwoca tends to win
iwoca tends to win when you want flexibility rather than a single lump sum. The Flexi-Loan works like a reusable credit line: draw funds for a stock order or a tax bill, repay when a customer pays you, then draw again without reapplying. Because interest is charged only on the outstanding balance and there is no early repayment penalty, it can be efficient for short, irregular borrowing where you cannot predict exactly when you will need cash. Its largely automated process and use of open banking also make it a strong fit for newer businesses and sole traders that want a quick answer with minimal paperwork.
Where Capify tends to win
Capify tends to win for established businesses with strong or seasonal takings, particularly those that take a lot of card payments. Its merchant cash advance is built around that pattern: repayments flex as a percentage of what you turn over, so a quiet week costs you less and a busy week clears the balance faster. That alignment with real trading can feel more comfortable than a fixed monthly figure for retail, hospitality and similar sectors. Capify’s long track record in turnover-based lending and its willingness to weigh trading performance over credit score also help businesses that have revenue but an imperfect file.
Who each lender suits
iwoca tends to fit if…
- ➔ You want a flexible facility you can draw and repay repeatedly.
- ➔ Your cash-flow needs are irregular or hard to predict.
- ➔ You value no early repayment fees and paying interest only on what you use.
- ➔ You are a newer or smaller business wanting a fast online decision.
Capify tends to fit if…
- ➔ You take significant card or overall turnover each month.
- ➔ You prefer repayments that flex with your takings.
- ➔ You are an established business with a trading track record.
- ➔ You work in retail, hospitality or another seasonal, card-heavy trade.
How Greenwood helps you choose
Greenwood Capital is a Manchester-based, whole-of-market finance broker. Rather than applying to iwoca and Capify separately and risking multiple footprints, you can tell us about your business once and we will look across a broad panel of lenders, including these two, to shortlist the options that genuinely fit your situation, turnover and how you prefer to repay. This is general, informational help to compare the market, not financial advice or a recommendation, and the decision always stays with you. We explain the trade-offs in plain terms so you can confirm the current cost and terms with the lender before you commit.
The verdict
Neither iwoca nor Capify is universally better; they solve different problems. iwoca is the natural pick when you want flexible, reusable credit with the freedom to repay early, while Capify is compelling when your income is turnover-led and you want repayments that move with your takings. The right answer depends on how your revenue behaves, how established you are and how you want to repay, so it pays to compare live offers side by side rather than assume.
Sources
- iwoca official website: product pages for the Flexi-Loan, business loans and iwocaPay, including published amounts, terms and eligibility guidance.
- Capify official website: product pages for the merchant cash advance and business loan, including eligibility criteria and repayment structure.
- General industry references on alternative business finance, merchant cash advances and revolving credit facilities in the UK.
- Company background and operating history published by each lender.