iwoca provides fast, flexible finance for UK SMEs. Understanding their eligibility criteria and application process helps businesses access working capital quickly.
Basic Eligibility Criteria for SMEs
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Business Type: Available to Limited Companies and Limited Liability Partnerships (LLPs) registered in the UK. Sole traders are also eligible.
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Trading History: Businesses typically need to have been trading for at least 4 months. Newer businesses might be considered based on other factors.
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Turnover: Minimum annual turnover requirements apply, often starting around £10,000, but this can vary. iwoca assesses overall business health.
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Creditworthiness: iwoca assesses the business's credit profile and potentially the director's personal credit history. They aim to look beyond just the credit score, considering real-time business data.
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UK Based Operation: The business must be based and operating in the UK.
Information & Documentation Needed:
iwoca's process is designed to be data-driven and minimize paperwork:
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Basic Business Details: Company name, registration number (if applicable), address, industry.
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Funding Amount: How much finance you need (up to your approved limit for Flexi-Loan).
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Data Linking (Preferred): Securely link your business bank account(s) via Open Banking and/or connect your accounting software (e.g., Xero, QuickBooks, Sage). This allows iwoca to quickly assess your business performance.
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Manual Upload (Alternative): If data linking isn't possible, you can typically upload recent business bank statements (usually 3-6 months) and potentially VAT returns or management accounts.
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Director/Owner Details: Basic personal information for identity verification and credit checks.
Application Process
iwoca's application process is fast and technology-led:
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1. Online Application: Complete the simple online form on iwoca's website, providing business details and funding needs. Takes minutes.
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2. Link Data or Upload Docs: Securely connect your bank accounts/accounting software or upload required documents.
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3. Fast Assessment: iwoca's technology analyzes the data to assess creditworthiness and affordability rapidly.
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4. Decision and Offer: Receive a decision, often within hours. If approved, you get a clear offer detailing the credit limit (for Flexi-Loan), interest rate, and terms.
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5. Access Funds: Once the agreement is signed digitally, you can draw down funds from your Flexi-Loan limit as needed, typically available within hours.
Loan Terms and Conditions
Key terms for iwoca's Flexi-Loan:
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Interest Rates: Rates are tailored to the business's risk profile and typically quoted as a monthly interest rate. Interest is only paid on the funds drawn down.
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Loan Amounts (Credit Limit): From £1,000 up to £500,000.
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Repayment Terms: Typically up to 12 or 24 months for each drawdown, with flexible repayment options (e.g., monthly payments).
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Fees: iwoca is transparent about fees. There are no arrangement fees or early repayment penalties. Interest is the primary cost.
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Security: Flexi-Loans are typically unsecured, but personal guarantees from directors may be required depending on the amount and business circumstances.
Who Is This Finance Best For?
iwoca's Flexi-Loan is particularly suitable for:
SMEs needing flexible working capital:
Businesses that experience fluctuating cash flow needs and require access to funds on demand, without committing to a large fixed-term loan.
Learn more: Managing cash flow effectively in SMEs
Businesses requiring speed:
Companies needing quick decisions and fast access to funds to cover immediate costs or seize time-sensitive opportunities.
Learn more: Options for fast business funding
Companies comfortable with technology:
Businesses that are happy to link bank accounts or accounting software and manage their finance digitally.
Learn more: The impact of fintech on SME lending
Tips for a Successful Application
To enhance your chances of approval for an iwoca Flexi-Loan:
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Link Bank/Accounting Data: Providing access via Open Banking or linking accounting software gives iwoca the richest data for assessment and often leads to faster decisions and potentially better offers.
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Ensure Data Accuracy: Make sure the information in your linked accounts or uploaded documents is accurate and up-to-date.
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Check Business Credit: Review your business credit report beforehand to understand your profile and address any inaccuracies.
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Be Clear on Purpose: Even for a flexible facility, having a clear idea of how you intend to use the funds helps iwoca understand your business needs.
