Hydr vs iwoca: UK Invoice Finance Comparison 2026
See how Hydr 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 (Hydr: 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. Hydr advances up to 100% per invoice, setup typically in same day to 1 working day; iwoca typically takes 24 hours (approval) to set up. Hydr has no minimum turnover, iwoca has no fixed minimum turnover. Read the side-by-side below, then jump to the "when X wins" sections.
Side-by-side
| Compared on | Hydr | iwoca |
|---|---|---|
| Product type | Single-invoice finance (digital, selective) | Flexi-loan and revolving credit (not invoice finance) |
| Min turnover | No minimum | No fixed minimum |
| Advance rate | Up to 100% per invoice | N/A (credit line, not advance against ledger) |
| Typical fee | Flat fee per invoice financed | Rates starting at 1.5% per 30 days on drawn balance |
| Confidential available? | Yes | N/A |
| Factoring available? | No | N/A |
| Setup speed | Same day to 1 working day | 24 hours (approval) |
Sources for these figures: Hydr: 100% advance, fixed fee per invoice, onboarding under 10 minutes · Hydr: setup time · iwoca: rates from 1.5% per 30 days, approval within 24 hours · iwoca: founding date
When Hydr wins
- Transparent flat fee per invoice, no whole-book contract.
- Same-day digital onboarding.
- Integrates with Xero and other accounting platforms.
- No minimum turnover; finance invoices selectively.
Best for
Selective single-invoice finance, Smaller and early-stage businesses, Xero-driven workflows.
Watch outs
- Selective single-invoice model, not whole-ledger factoring.
- Per-invoice fees can add up for high-volume users.
- Newer, smaller funder than incumbents.
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
Hydr 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. Hydr is the stronger fit for selective single-invoice finance; 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 Hydr and iwoca price their facilities?
Pricing: Hydr, flat fee per invoice financed; 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 Hydr or iwoca?
Hydr offers confidential invoice discounting (your customers are not notified). iwoca is not an invoice finance facility, so confidential invoice discounting does not apply.
Where does each one struggle?
Hydr is the wrong fit for high-volume whole-ledger users. 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 Hydr 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 Hydr's own site.
- Rates, advance percentages and product details checked against iwoca's own site.
- Hydr: 100% advance, fixed fee per invoice, onboarding under 10 minutes
- Hydr: setup time
- iwoca: rates from 1.5% per 30 days, approval within 24 hours
- iwoca: founding date
Get 3 free quotes
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.
Get my 3 quotes →Best Business Loans Ltd (16833937), directed by Oliver Mackman, owns and operates Market Invoice. Last updated: .
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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.