October 22, 2025

Lender Comparisons

Iwoca vs Capify: Loan Comparison Guide

Compare Iwoca and Capify for business loans. Evaluate interest rates, application process, and customer service.

Jesse Spence

Finance content writer / Market researcher

Iwoca vs Capify: Which Lender Is Right for Your UK Business?

This guide compares two well-known UK alternative lenders. Iwoca and Capify both offer fast decisions and flexible repayments. We look at products, costs, speed and eligibility. The aim is to help busy owners choose a lender that fits current cash flow and risk tolerance.

TL;DR

Iwoca suits limited companies that want flexible terms and clear day‑by‑day interest with no early repayment fees.
Capify suits card‑taking traders that want a simple fixed payback or a merchant cash advance tied to takings.
Iwoca’s typical decision is within 24 hours and terms can extend up to 60 months. Capify often funds within 24 hours with daily or weekly repayments.
Personal guarantees are common for both. Capify’s unsecured loans almost always require one. Iwoca usually requires one for Flexi‑style loans.
Headline price models differ: Iwoca uses monthly or daily interest; Capify often uses a fixed total repay or factor rate for MCA.

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Products and Terms at a Glance

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

Iwoca provides flexible business loans with borrowing from £1,000 to £1,000,000. The core product lets you repay early with no fees, and interest is charged only on the outstanding balance. Current guidance shows decisions in about 24 hours, terms from 1 day up to 60 months, and extra fees may apply on terms longer than 12 months. See Iwoca’s own small business loans page and pricing page for the latest detail.

Iwoca’s Flexi‑Loan variant focuses on short‑term needs, usually from 1 day to 24 months, with quick drawdowns and no early repayment fees. See the Flexi‑Loan page for the core features.

Eligibility is streamlined but there are limits. Iwoca currently lends to UK limited companies and LLPs. Sole traders are excluded. Startups under six months can be considered, though initial limits are smaller. See the eligibility notes in the Iwoca small business loans copy and the FAQ.

Personal guarantees are common for unsecured facilities. Iwoca confirms that a director guarantee is usually required for its flexible unsecured loans. See Iwoca’s guide on personal guarantees.

Pros of Iwoca

Fast decisions and funding in hours once approved.
No early repayment fees, so you can cut interest costs if cash flow improves.
Transparent pricing with interest applied to the daily balance.
Broad term range up to 60 months for certain loans.
Straightforward application. In many cases recent bank statements are enough.

Cons of Iwoca

Limited companies and LLPs only. Sole traders are not eligible.
Personal guarantees are usually required for unsecured facilities.
Borrowing beyond 12 months may attract an additional fee.

Iwoca vs Capify: the quick, visual way to choose today

This dashboard turns key facts from the comparison into charts you can scan in minutes. Each tab shows one decision area. Read bars as ranges and dots as typical points. Use it to weigh price, size, term, speed, and practical frictions before you apply. Numbers reflect public guidance and worked examples. Treat them as directional and check your personalised offer.

Bars show each lender’s cost range. The dot marks a typical point taken from public examples. For Iwoca, we use published monthly/annual interest guidance; for Capify MCA we use the 1.2–1.5 factor range expressed as % of total repay over a year. Credit strength, sector risk, security, and term all move the price. A 1% rate gap on £100,000 over 5 years changes the monthly by about £– and total interest by about £–. Prioritise the lower typical if you are near average risk; prefer the wider range if you may land at the ends.

Bars map stated ceilings. Iwoca ranges from £1,000 to £1,000,000. Capify spans from about £5,000, with MCA access up to £3,000,000. Use the lower end for fit‑out, short‑term stock, or VAT; the upper end can fund bigger capex or a seasonal ramp. Larger fixed facilities may be available with security or strong turnover and matter when you plan multi‑site growth. Remember affordability and security set the usable ceiling, not just the headline max.

Bars show term ranges. Longer terms cut the monthly but raise total interest. At £50,000, 3 years versus 6 years at a representative 40% p.a. changes the monthly to about £– vs £– and adds roughly £– of extra interest over the longer path. Longer terms suit seasonal cash flow or a growth plan that needs headroom. Shorter terms suit strong margins and quick payback.

Stacked bars decode time from application to decision and from decision to funds. The dot shows a fastest case. Checks on bank statements, ID, and any security can slow deals. If payroll is due in 5 days, a faster path can be safer even at a touch higher price. Fast paths assume clean files and quick signatures, so gather documents early.

Bars show application and late‑payment fees where publicly stated. Legal, valuation, and third‑party costs are not included here. Impact example: a £150 fee on a £20,000 loan adds 0.75% to day‑one cost. Compare fees alongside rate and term, not in isolation. If a fee is not published, ask for it in writing before you sign.

Bars show arrangement fees as % of principal where disclosed. Some products deduct the fee upfront; others add it to the balance. Worked example: 1.5% on £250,000 equals £–. A lower rate with a higher fee can still be cheaper on long terms, so model both. Check early‑settlement rules so you know how fees behave if you repay early.

Radar scores use simple rules: booleans score 1, integrations are counts, and UX is 1–5. Open banking can speed underwriting. APIs and accounting links help multi‑account firms and reduce admin. Mobile support helps owners approve on the go. Busy owners and multi‑entity groups gain most from strong digital features.

Bars show star ratings; the line shows NPS on the right axis. Volume matters: more reviews give steadier signals. Experiences vary by branch and case type, so expect some spread. Read recent reviews and match themes to your needs, such as speed, documents, or portal ease.

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

Capify offers unsecured and secured business loans plus a merchant cash advance. Unsecured loans typically range from £5,000 up to high six or seven figures, with daily or weekly repayments and funding possible within 24 hours. See the Capify small business loans page and their UK site.

The merchant cash advance lets you repay as a fixed percentage of your card takings. Capify quotes access from £5,000 to as much as £3,000,000 on its MCA page. Eligibility includes at least 12 months trading and strong monthly card volumes.

Capify openly confirms that unsecured loans require a personal guarantee from the majority owner. See the FAQ. Independent reviews also note minimum monthly turnover requirements, usually at least £10,000 for loans, and daily or weekly repayment schedules. See NerdWallet’s review and Finder’s guide.

Pros of Capify

Same‑day approval possible, with funding often within 24 hours.
Choice of unsecured, secured, or merchant cash advance.
Repayments aligned with cash flow via daily or weekly schedules, or a card‑sales split for MCA.
High potential borrowing ceilings, especially with security or strong turnover.

Cons of Capify

Personal guarantee is standard for unsecured loans.
Pricing is often shown as a fixed total repay or factor rate, so APR comparisons are less direct.
Minimum trading history and turnover thresholds apply.

Costs and Repayments in Practice

Iwoca prices are expressed as monthly or daily interest on the outstanding balance. Headline messaging shows rates starting at 1.5% per month. For terms beyond 12 months, an additional fee can apply, typically 5% for 13 to 24 months and 6% for longer. See Iwoca’s small business loans page and pricing page where a representative example is given.

Capify usually quotes a fixed total repay figure for loans, broken into small daily or weekly instalments. Its merchant cash advance uses a factor rate and a split of card takings, so payments flex with revenue. See Capify’s loans page and MCA page. Reviews such as NerdWallet and Finder confirm the repayment style. Typical MCA factor ranges in the UK sit around 1.2 to 1.5 according to Rise Funding.

Feature	Iwoca	Capify
Borrowing range	£1,000 to £1,000,000	Loans from ~£5,000, MCA up to £3,000,000
Typical terms	1 day to 60 months (Flexi often 1 day to 24 months)	Loans commonly 6 to 18 months for unsecured; MCA flexible to takings
Pricing model	Monthly/daily interest on balance; no early repayment fees	Fixed total repay for loans; factor rate and card‑sales split for MCA
Eligibility highlights	UK limited companies/LLPs; startups considered with lower limits; sole traders excluded	12+ months trading; minimum turnover thresholds; strong card takings for MCA
Security	Unsecured; personal guarantee usually required	Unsecured loans require a personal guarantee; secured options available
Speed	Decision ~24 hours; funds in hours	Same‑day approval possible; funding within 24 hours

Notes: Figures are taken from lender pages and independent reviews referenced in Sources. Pricing is personalised. Your rate and term will depend on affordability, credit profile and sector.

Worked example: Iwoca

Illustration only. Using Iwoca’s representative pricing for a 12‑month unsecured loan, £10,000 over 12 months at 40% fixed interest p.a. shows a total repayable of about £12,290 and monthly repayments of about £1,025. That example is published on Iwoca’s pricing pages. If you scale that approach, a £25,000 loan for 12 months on the same representative basis would imply monthly repayments around £2,562 and a total repayable near £30,725. Your actual quote may differ because Iwoca prices to risk and may add a long‑term fee beyond 12 months.

Worked example: Capify

Illustration only. Consider a merchant cash advance of £50,000 with a factor of 1.3. The fixed payback would be £65,000. If you agree to remit 12% of daily card takings and your average card sales are £2,500 per day, your average daily repayment would be £300. If sales fall, the daily repayment falls in step. This shows how MCA can smooth cash flow. Typical factor ranges are outlined by Rise Funding. Capify’s MCA structure is explained on its product page.

Speed and Service

Iwoca guides for a decision in about 24 hours and funds can reach your account in hours after approval. Their fastest drawdown record is a few minutes, but treat that as an outlier. See Iwoca’s small business loans and Flexi‑Loan pages.

Capify promotes same‑day approvals with funding often within 24 hours. It also offers a UK account manager. See Capify UK and the small business loans page.

Who Each Lender Suits

Typical scenario for Iwoca

You run a limited company with healthy cash flow but uneven invoices. You need a quick top‑up to buy stock, bridge VAT, or cover payroll. You want the option to clear early without penalty. Iwoca’s flexible unsecured business loans with interest on the daily balance and terms up to 60 months can work well.

Typical scenario for Capify

You take a large share of sales by card and want repayments to track takings. You value smaller daily or weekly instalments over a single monthly hit. A merchant cash advance is designed for that. If you want a fixed total repay over a short term, Capify’s unsecured loan may suit, provided you are comfortable offering a personal guarantee and meet turnover thresholds.

How to Apply

Application steps and documentation required for each lender.

Iwoca. Apply online and connect your business bank account. Iwoca aims to give a decision within 24 hours. In many cases recent bank statements are enough. For larger or more complex cases, expect requests for VAT returns and filed accounts. See Iwoca’s application steps and FAQ copy for the list of documents.

Capify. Start with a quick eligibility check. If you proceed, expect to provide at least 12 months of business bank statements, ID for the owner, and to sign a personal guarantee. Capify notes same‑day approval is possible, and funding may follow within 24 hours. See Capify’s eligibility check and FAQs.

Final Verdict: Which Lender Fits Your Business Best

Choose Iwoca if…

You run a limited company or LLP and need flexible terms.
You plan to repay early if cash improves and want to avoid penalties.
You prefer interest charged on the daily balance and clear costs.
You want the option to stretch terms up to 60 months on eligible loans.

Choose Capify if…

Your customers pay by card and you want repayments to flex with sales.
You prefer smaller, more frequent repayments instead of one monthly debit.
You can meet the trading history and turnover thresholds.
You are comfortable giving a personal guarantee for an unsecured loan.

Every situation is different. If you want independent guidance, speak to Funding Agent or share your plans through our enquiry form. We can compare quotes across lenders and help you pick the right structure, from term loans to a revolving credit facility.

Sources

Iwoca small business loans — borrowing range, 24‑hour decisions, term up to 60 months, eligibility notes.
Iwoca pricing and representative example — 12‑month rep example and long‑term fee policy.
Iwoca Flexi‑Loan — short‑term focus and quick drawdown messaging.
Iwoca on personal guarantees — unsecured facilities and guarantee norms.
Iwoca FAQ — document requirements and general criteria.
Capify UK site — fast funding headline and product mix.
Capify small business loans — borrowing capacity and funding speed.
Capify merchant cash advance — amounts, repayments by card‑sales percentage, eligibility highlights.
Capify FAQs — personal guarantee requirement and document list.
NerdWallet: Capify review — turnover thresholds and repayment style.
Finder: Capify overview — daily or weekly repayments and typical unsecured loan terms.
NimbleFins: Capify review — turnover and trading history guidance.
Alternative Business Funding: Capify profile — eligibility snapshot and turnover link to loan size.
Rise Funding on MCA factor rates — typical UK factor range.

Assumptions: Where lenders do not publish a public APR or fixed fee for every case, we use realistic UK SME examples and clearly flag illustrations. Always check your personalised offer.

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FAQs

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