October 22, 2025
Lender Comparisons

Fleximize vs Iwoca: Business Loan Comparison

Compare small business loans from Fleximize and Iwoca. Explore interest rates, eligibility, and application processes.
James Laden
Co-founder and CEO

Choosing finance in 2025 is a choice between structure and flexibility. This head to head sets Fleximize against iwoca so you can see how limits, terms, pricing, and early settlement affect cash flow today. We focus on what you can borrow and what it really costs each month. If you are weighing a classic term loan against a flexible revolving credit facility, we lay out the trade offs and when each wins. First time applicants can also scan our unsecured business loans guide as they compare.

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TL;DR
  • Fleximize offers structured term finance with features like repayment holidays and a penalty free early settlement promise.
  • iwoca advertises loan limits up to £1,000,000 with terms up to 60 months on its long term loans product.
  • Fleximize typically requires director guarantees, a UK resident director, and a homeowner among directors; iwoca loans are unsecured and usually backed by a director guarantee.
  • Both price by risk and term; Fleximize discloses monthly rate bands for each product, iwoca sets a monthly interest rate and explains minimum repayments.
  • Decisions are fast with both; iwoca focuses on a digital journey, Fleximize blends speed with relationship underwriting.

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Fleximize vs iwoca, the charts that matter today

This dashboard turns lender facts into decisions. Read ranges as the vertical bars and typical as a single dot. Amounts and terms show usable headroom, not promises. Speed pairs the time to decision and time to funds. Fees and arrangement costs show day one drag. Use the radar, ratings, and examples to choose a path that fits your cash flow and risk.

Products and Terms at a Glance

Fleximize overview, loan sizes, fees, repayment style, terms, eligibility

Fleximize provides two core products. Flexiloan is a term loan from £10,000 to £500,000 over 12 to 60 months. Flexiloan Lite supports younger firms over 3 to 12 months. Both come with top ups, repayment holidays, and no hidden fees. Fleximize promotes a Penalty Free Promise, which means you pay interest only for the time you borrow. Eligibility generally includes six months of trading for Lite and twelve months for Flexiloan, director guarantees on every loan, at least one UK resident director, and a homeowner requirement. The introducer factsheet also notes that unsecured borrowing is usually available up to £250,000 and up to 36 months, with larger or longer terms often secured.

Pros of Fleximize

  • Clear feature set with repayment holidays and top ups
  • Penalty free early settlement
  • Choice of unsecured or secured structures
  • Relationship led underwriting with quick decisions

Cons of Fleximize

  • Homeowner requirement and director guarantees may exclude some applicants
  • Unsecured terms typically capped at 36 months for larger sums

iwoca overview, loan sizes, fees, repayment style, terms, eligibility

iwoca offers unsecured small business loans with a fast online application. Its long term loans page states £1,000 to £1,000,000 for up to 60 months, while the main loans pages and product variants explain how minimum repayments work and show example pricing. Eligibility focuses on UK limited companies and partnerships. iwoca describes typical credit limits that begin around one month of revenue and increase as performance grows. Early repayment has no fee and interest is charged on outstanding balances only.

Pros of iwoca

  • High headline limits and long terms on the long term product
  • Fast digital journey with decisions often within 24 hours
  • No early repayment penalties

Cons of iwoca

  • Personal guarantees usually required for limited companies
  • Sole traders are currently not eligible

Costs and Repayments in Practice

Both lenders use risk based pricing. Fleximize discloses monthly rate bands on its product pages, for example 0.9 to 2.9 percent per month for Flexiloan and 1.9 to 3.9 percent per month for Flexiloan Lite. iwoca sets a monthly interest rate and provides a worked example that shows minimum repayments of accrued interest plus a fraction of the original principal each month. Both allow early settlement without a fee. Fleximize pairs this with its Penalty Free Promise, which makes the saving explicit for early repayment.

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Feature Fleximize iwoca
Loan size £10,000 to £500,000 £1,000 to £1,000,000
Typical terms Lite 3 to 12 months; Flexiloan 12 to 60 months Up to 60 months on long term loans
Headline pricing 0.9% to 2.9% pm on Flexiloan; 1.9% to 3.9% pm on Lite Monthly rate set individually; pricing example published
Early repayment No fees; Penalty Free Promise No fees; interest charged on outstanding balance
Security Unsecured or secured; unsecured typically up to £250k and 36 months Unsecured with director guarantee for companies

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Worked example, Fleximize Assume a £75,000 Flexiloan over 36 months at a flat monthly rate of 1.6 percent with equal monthly repayments. If you repaid on the original schedule, total interest would be about £21,600, so a total repay of roughly £96,600. If you used a top up in month 18 and then repaid early in month 24, the Penalty Free Promise means you would only pay interest for 24 months, which would reduce the total interest by about one third, to roughly £14,400, and the total repay to around £89,400. These are illustrations, not quotes.

Worked example, iwoca Assume a £50,000 long term loan at 2.5 percent per month over 24 months. iwoca explains that the minimum each month is interest plus one twelfth of the original principal under its standard example method. On that basis the first month’s payment would be £1,250 interest plus £4,167 principal, about £5,417 in total, decreasing over time as interest falls. If you made only the minimum payments, the total interest would be about £15,000, so a total repay near £65,000. Repaying early reduces total interest because interest is charged daily on the outstanding balance.

Speed and Service

iwoca is built for speed, with a short application and a decision in about 24 hours for many profiles. Funds can be drawn down through the dashboard soon after approval. Fleximize blends quick decisions with a relationship led process, including a named contact and human underwriting. This can help if your story needs explanation, for example a turnaround plan or a seasonal trading pattern.

Who Each Lender Suits

Scenario 1, why Fleximize often fits

Choose Fleximize if your plan is steady growth and you value structure. It suits equipment purchases, fit outs, and hiring plans where a predictable term and the option of repayment holidays matter. The homeowner and director guarantee requirements are more suitable for established teams that can meet those conditions. Secured options may also help you unlock a larger amount or a longer term.

Scenario 2, why iwoca often fits

Choose iwoca if speed and flexibility are the priority. The long term product gives room to spread cost, and shorter facilities suit seasonal cash flow. Firms that can link their bank and provide clear revenue data tend to move quickly through underwriting. The lack of a sole trader route means companies and partnerships are the target audience.

How to Apply

Fleximize steps and requirements

Apply online with company and director details, then upload recent bank statements and accounts. A human underwriter reviews the case. Decisions are often available within 24 hours. If approved, a relationship manager guides the final steps and funds are sent on completion. Documents usually include three months of bank statements, latest accounts, and VAT returns or twelve month sales figures.

iwoca steps and requirements

Apply online in minutes and link your business bank, or upload statements if needed. A typical decision follows in about 24 hours. Draw down funds from the dashboard once approved. iwoca sets an initial limit that often starts near one month of revenue and can grow with performance.

Final Verdict, Which Lender Fits Your Business Best

Choose Fleximize if…

  • You want the certainty of a structured term loan
  • You value repayment holidays and the ability to repay early without a fee
  • You can meet the director guarantee, UK resident director, and homeowner conditions

Choose iwoca if…

  • You need a quick, digital journey with rapid drawdown
  • You want the option to borrow for up to 60 months with no early repayment penalty
  • Your company is a limited company or partnership and you can support a director guarantee

Both lenders are proven options for UK SMEs. The right choice depends on your revenue pattern, your tolerance for guarantees and security, and how much structure you want in the repayment plan. If you would like help matching your profile to a lender, visit Funding Agent, or send details via our enquiry form and we will run a tailored comparison.

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FAQs

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