Funding Circle vs iwoca: UK Business Finance Comparison 2026
See how Funding Circle compares to iwoca side by side, then get three tailored quotes to weigh alongside them. Free, no obligation, and nothing to pay if you decide not to proceed.
Start here: what fits your business?
These are different products rather than like-for-like invoice finance rivals (Funding Circle: business term loans and flexipay (not invoice finance); iwoca: flexi-loan and revolving credit (not invoice finance)). UK businesses still weigh them side by side, so the real question is which job you need doing, not which is the better invoice finance line. Funding Circle typically takes 48 hours (funds, after acceptance) to set up; iwoca typically takes 24 hours (approval) to set up. Neither sets a minimum turnover. Read the side-by-side below, then jump to the "when X wins" sections.
Side-by-side
Full reviews: Funding Circle · iwoca
| Compared on | Funding Circle | iwoca |
|---|---|---|
| Product type | Business term loans and FlexiPay (not invoice finance) | Flexi-loan and revolving credit (not invoice finance) |
| Min turnover | No fixed minimum | No fixed minimum |
| Advance rate | N/A (term loan, not advance against ledger) | N/A (credit line, not advance against ledger) |
| Typical fee | Rates starting at 6.9% per year (business loans) | Rates starting at 1.5% per 30 days on drawn balance |
| Confidential available? | N/A | N/A |
| Factoring available? | N/A | N/A |
| Setup speed | 48 hours (funds, after acceptance) | 24 hours (approval) |
Sources for these figures: Funding Circle: founding date · Funding Circle: loans from 6.9% per year, funds typically within 48 hours · Funding Circle: business loan £10,000 to £750,000, up to 6 years, one-off completion fee (checked 24 Sep 2026) · Funding Circle: £18 billion lent to over 135,000 UK businesses · iwoca: rates from 1.5% per 30 days, approval within 24 hours · iwoca: founding date
When Funding Circle wins
- Established large-scale UK SME lending platform.
- Fixed repayments make budgeting predictable.
- No debtor notification and no ledger management.
- Fast online application and decisioning.
Best for
One-off growth or capital projects, Predictable fixed-repayment borrowers, Businesses without a strong sales ledger.
Watch outs
- Not invoice finance: a term loan, not a ledger advance.
- Funding does not scale automatically with sales.
- May require a personal guarantee.
When iwoca wins
- Same-day decisions and fast drawdown.
- No factoring of the ledger and no customer notification.
- Draw and repay flexibly; interest only on what is used.
- Strong fit when there are few or large single debtors.
Best for
Businesses with few invoices, Fast one-off cash flow gaps, Owners who want no debtor contact.
Watch outs
- Not invoice finance: it lends against the business, not invoices.
- Monthly interest can exceed invoice finance for sustained borrowing.
- Facility size capped lower than a whole-ledger IF limit.
FAQ
Funding Circle or iwoca: which fits your business in 2026?
They do different jobs (see the product types above), so pick by the job you need doing. Funding Circle is the stronger fit for one-off growth or capital projects; iwoca fits businesses with few invoices better. The "when X wins" sections above break this down by profile, and the commercials are covered in the next question.
How do Funding Circle and iwoca price their facilities?
Pricing: Funding Circle, rates starting at 6.9% per year (business loans); iwoca, rates starting at 1.5% per 30 days on drawn balance. The table above sets advance rate, setup speed and minimum turnover side by side.
Can I get a confidential facility with either Funding Circle or iwoca?
Neither Funding Circle nor iwoca is an invoice finance facility, so confidential invoice discounting does not apply to either.
Where does each one struggle?
Funding Circle is the wrong fit for funding that flexes with turnover. iwoca is the wrong fit for high-volume sales ledgers better suited to factoring. If either describes your business, browse the side-by-side or get 3 free quotes through our quote form.
Can Market Invoice help me choose between Funding Circle and iwoca?
Yes. marketinvoice.co.uk is an independent comparison and introducer service operated by Best Business Loans Ltd (company 16833937), and is not tied to either provider. Share your turnover, sector and debtor profile and eCapital, our introduction partner, handles your enquiry and comes back to you with quotes, with no obligation to proceed.
Related
Sources
- Rates, advance percentages and product details checked against Funding Circle's own site.
- Rates, advance percentages and product details checked against iwoca's own site.
- Funding Circle: founding date
- Funding Circle: loans from 6.9% per year, funds typically within 48 hours
- Funding Circle: business loan £10,000 to £750,000, up to 6 years, one-off completion fee (checked 24 Sep 2026)
- Funding Circle: £18 billion lent to over 135,000 UK businesses
- iwoca: rates from 1.5% per 30 days, approval within 24 hours
- iwoca: founding date
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Tell us monthly turnover, sector, debtor profile and whether the facility needs to be confidential. eCapital, our introduction partner, handles your enquiry and comes back to you with quotes. Free, and no obligation to proceed.
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Disclosure: marketinvoice.co.uk is an independent invoice finance comparison and introducer service operated by Best Business Loans Ltd (company number 16833937). It is a separate business and is not connected to Kriya, Allica Bank or to any provider named on this page. Our introduction partner pays us a fixed fee for each business we introduce, whether or not a facility follows; this is never added to your costs. Invoice finance for limited companies is not a regulated activity, so this comparison is general information rather than regulated financial advice. Figures are indicative; larger facilities are commonly priced bespoke, so confirm terms directly with the provider before you sign.