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FAQs - How iwoca loans work and who is eligible?
FAQs - How iwoca loans work and who is eligible?

A little more detail on how our funding works and who is eligible.

Written by Jake Mellett
Updated over a week ago

What are the criteria to apply?

We're happy to consider a wide range of businesses ranging from new startups to established companies. However you must have a UK-based business and operate as a limited company or a partnership. Startup businesses with no trading history are limited to a maximum credit limit of £10,000.

How much can I borrow?

We will approve your business for £1,000 to £500,000. Your credit limit is typically around one month’s revenue. As your business grows we are happy to increase this limit.

How long do I have to repay?

Our maximum term is for up to 24 months but you can always repay early if you don't need the funding for that long. We only charge interest for each day you have the funding so making early repayments is a great way to reduce the total amount of interest you will pay.

If I apply, are there any commitments to take the funds?

No. It’s free to get a quote - you are free to choose whether to take the funds once you have received an offer.

Can I top up my loan?

We can review your business for a top-up once you've made four monthly repayments on your existing loan (or the equivalent amount). The process is quick, easy and free. We may ask you to provide updated documents before you top up your loan – your Account Manager will be happy to advise.

Can I take a new loan once my first loan has finished?

Of course. We can renew your offer once your loan has ended, subject to approval. If your business has grown we may be able to increase your credit limit or reduce your interest rate. Then it’s just a matter of logging in to your account to withdraw the funds.

What if I am not eligible yet?

No worries, we’re sure you'll get there soon. Give us a call on 020 3397 3375 if you want us to take another look at your business after a few months and we will see what we can do.

Are loans from iwoca secured?

No. iwoca offers unsecured loans with no asset requirements. For limited companies we do ask for a personal guarantee from a company director.

Do you charge fees?

It depends on which of our products you're using.

If you have a 12 month Flexi-Loan you won’t pay any fees or extra charges. Just interest for the time you have the loan. Apply

If you have a 24 month Flexi-loan (or longer) we charge a funding fee. You don't have to pay this fee upfront though, the fee is spread across your first few repayments. Apply for a business loan.

The big thing to know is that we don’t have any hidden fees or charges. And we’ll never charge you for repaying early.

Do you offer a fixed interest rate?

Not exactly: all our loans have a variable interest rate. If you draw down more money with us after your first funding, we might be able to offer you a different interest rate on the next funding. We can’t change your interest rate without your consent, though.

If we offer you a different rate, we’ll make sure to explain the change on your iwoca account or through a call with your Account Manager. Then you can decide if you want to go ahead with drawing down more funds.


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