iwoca vs Capify: UK alternative finance compared 2026
Two UK alternative-finance lenders aimed at different cashflow shapes. iwoca is a flexi-loan structure with a fixed monthly repayment on drawn balance. Capify is a merchant cash advance: repayments come out of daily card-machine takings as a percentage. Both are FCA regulated, both decide same-day, and both compete for the working-capital and post-decline market that mainstream term lenders avoid.
Quick verdict
- Pick iwoca for working-capital draw-down across any sector with regular bank-account flow.
- Pick Capify for hospitality, retail and salon businesses with strong card-machine takings.
- Capify is the more flexible of the two on credit history; iwoca is the more transparent on rate.
Side-by-side
| iwoca | Capify | |
|---|---|---|
| Product type | Flexi-loan / line of credit | Merchant cash advance + term loan |
| Founded | 2011 | 2013 |
| Ticket range | £1k to £500k | £3.5k to £500k |
| Typical rate | From 2% per month | Factor rate 1.15 to 1.45 |
| Decision time | Same day to 24 hours | Same day |
| Soft search at quote | Yes | Yes |
| Limited companies only | No | No |
| FCA regulated | Yes | Yes |
| Companies House | 07798925 | 10183728 |
| Overall rating | 4.4 / 5 | 4.0 / 5 |
| Rate transparency | 4/5 | 3/5 |
| Eligibility clarity | 4/5 | 4/5 |
| Decision speed score | 5/5 | 5/5 |
| Decline handling | 4/5 | 4/5 |
Product overview
iwoca
iwoca is a UK flexi-loan and line-of-credit provider founded 2011, FCA regulated, tickets £1k to £500k with same-day to 24-hour decisions. The draw-as-you-go structure makes iwoca the best mainstream option for working capital and cashflow gaps rather than fixed-term project finance. Rate is quoted per month (from 2%), not APR, so direct comparison takes maths. Best fit: Ltd companies trading 12 months+ needing flexible draw-down. Companies House 07798925.
Capify
Specialist in merchant cash advance against card-machine takings. Fast, accommodating on credit history, but the factor-rate model makes effective APR opaque. Best fit for hospitality and retail with strong card-machine flow.
When iwoca wins
- You want a fixed monthly cost you can plan around, not a percentage skim from card-machine takings.
- You operate B2B or service business with low or zero card flow.
- You need recurring draw-down: VAT bills, seasonal stock, payroll cover.
- Rate transparency matters more than the absolute headline rate.
When Capify wins
- Hospitality, retail, salons or any business with strong daily card-machine flow.
- Seasonal businesses where a fixed monthly debit would pinch in slow months.
- Lighter credit profiles where mainstream term lenders have already declined.
- You want the funding amount to scale naturally with your sales rather than a fixed term.
Cost comparison on a £30k ask
On a £30,000 ask paid back over 9 months, iwoca's per-month rate at around 2.5% on drawn balance compounds to roughly £4,000 in interest, depending on draw-down pattern. Capify's factor rate of 1.30 on the same £30,000 lands at £9,000 total cost, paid back as a percentage of daily card-machine takings. The headline gap looks large until you account for the fact that iwoca requires a fixed monthly debit regardless of trading; Capify scales with sales. For a hospitality business doing £100k a month on the card machine, Capify's smoother repayment shape can be worth the rate premium.
FAQ
iwoca or Capify for a hospitality business?
Capify usually wins. Capify's repayments scale with daily card-machine sales, which fits the seasonal swings of hospitality and retail. iwoca is a flexi-loan: you pay a fixed amount each month against drawn balance, regardless of takings.
Which is cheaper, iwoca's per-month rate or Capify's factor rate?
Both rate models hide the effective APR. iwoca quotes from 2% per month on drawn balance; Capify quotes a factor rate of 1.15 to 1.45. On a typical 9-month payback, Capify's 1.30 factor lands around 60% APR equivalent. iwoca on a 12-month draw at 2% monthly compounds higher than the headline.
Will iwoca and Capify accept a recent CCJ?
Both are more accommodating than mainstream term lenders. Capify is the more flexible of the two on credit history, particularly when the application is backed by strong card-machine flow. iwoca will engage with light credit issues but draws a harder line at active CCJs.
How long does each take to fund?
iwoca decisions are usually same day for established applicants and funds within 24 hours. Capify decisions are also same-day for the standard MCA product, with funding typically the next business day.
Is a personal guarantee required?
Yes for iwoca on Ltd-company borrowing. Capify usually requires a director PG too, though the structure is built around card-machine takings rather than a fixed monthly debit.
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Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-07.