iwoca vs Funding Circle
Two of the largest UK SMB lenders. iwoca runs on a flexi-loan structure (draw-as-you-go); Funding Circle is a fixed-term unsecured term loan. Different products at different price points; the right answer depends on what you actually need.
Side-by-side
| iwoca | Funding Circle | |
|---|---|---|
| Product type | Flexi-loan / line of credit | Term loan |
| Founded | 2011 | 2010 |
| Ticket range | £1k to £500k | £10k to £500k |
| Typical rate | From 2% per month | 6.9% to 26.9% APR |
| Decision time | Same day to 24 hours | 1 to 3 business days |
| Soft search at quote | Yes | Yes |
| Limited companies only | No | No |
| FCA regulated | Yes | Yes |
| Companies House | 07798925 | 07123069 |
| Overall rating | 4.4 / 5 | 4.3 / 5 |
| Rate transparency | 4/5 | 4/5 |
| Eligibility clarity | 4/5 | 5/5 |
| Decision speed score | 5/5 | 4/5 |
| Decline handling | 4/5 | 4/5 |
When iwoca wins
- You need flexible draw-down, pay interest on what you use, not on a lump sum sitting idle.
- Your trading history is sub-2-years; iwoca engages earlier than Funding Circle.
- You need a same-day decision and same-day funding for working-capital cash gaps.
- Your borrowing pattern is recurring (VAT bills, seasonal stock cycles) rather than a one-off.
When Funding Circle wins
- You want a fixed-term, fixed-rate loan with predictable monthly cost.
- Your business is established (2+ years) with clean credit and turnover above £100k.
- You can stomach Funding Circle's wider rate range to access the cleaner headline-rate end.
- You prefer a public-market-listed mainstream lender over a fintech flexi-loan structure.
Cost comparison
On a £50,000 ask over 24 months, iwoca's per-month rate (typically 2-3% on drawn balance) compounds to an effective APR meaningfully higher than Funding Circle's headline 6.9%. Funding Circle's offered rate is wide though, top-tier applicants land near 6.9%, average applicants land 11-15%, weaker applicants up to 26.9%. Per-month rates make iwoca look cheaper at first glance; it isn't, except when the flexi-loan structure is actively used (drawing only some of the facility).
Frequently asked questions
What is the core product difference between iwoca and Funding Circle?
iwoca runs a flexi-loan / line of credit with a draw-as-you-go structure; Funding Circle is a term loan. iwoca tickets run £1k to £500k and Funding Circle £10k to £500k, so the right pick depends on whether you want flexible drawdown or a fixed lump sum.
Which is faster to a decision?
iwoca typically decides in same day to 24 hours, Funding Circle in 1 to 3 business days. Both run a soft search at quote stage, so checking eligibility with either leaves no mark on your credit file.
Are both FCA regulated UK lenders?
iwoca is FCA regulated (Companies House 07798925) and Funding Circle is FCA regulated (Companies House 07123069). Both lend to UK SMEs and are listed in our editorial reviews.
What rate should I expect?
iwoca prices at From 2% per month and Funding Circle at 6.9% to 26.9% APR. Both are wide bands where the headline rarely matches the offered rate, so verify on the lender site once you have a quote.
Apply to either
Both lenders are on our broker panel. Use /get-quotes/ once and we route to whichever fits your profile better.
Open our /get-quotes/ form →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-04-26.