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 publishes a minimum turnover.
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 | Not published | Not published |
| 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 1 November 2026) · Funding Circle: £18 billion lent to over 135,000 UK businesses · Funding Circle: "If a personal guarantee is required or there are any offer conditions, these will also need to be completed" · 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
- Decision in 24 hours in almost all cases, by iwoca's account.
- 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.
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.
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. Get a written quote from each on the same invoices and compare the total cost.
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.
Who is each one not suited to?
Funding Circle is a poor fit for funding that flexes with turnover. iwoca is a poor fit for high-volume sales ledgers better suited to factoring. If that describes your business, you can get 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 we pass your details to one or more of the finance partners we work with, who come back to you with quotes, with no obligation to proceed.
Related
Sources
- Figures for Funding Circle come from its own website.
- Figures for iwoca come from its own website.
- 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 1 November 2026)
- Funding Circle: £18 billion lent to over 135,000 UK businesses
- Funding Circle: "If a personal guarantee is required or there are any offer conditions, these will also need to be completed"
- iwoca: rates from 1.5% per 30 days, approval within 24 hours
- iwoca: founding date
Get free quotes
Tell us monthly turnover, sector, debtor profile and whether the facility needs to be confidential. We pass your details to one or more of the finance partners we work with, who come back to you with quotes. Free, and no obligation to proceed.
Get my 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. We may be paid by the finance partners we introduce you to. This could be a fee or commission, depending on the partner and the finance arranged. It does not change what you pay. 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.