We review iwoca and their business loan offering
iwoca Review — Small Business Loans
What does iwoca stand for?
iwoca is a shortened version of “instant working capital”, which is what you can get if you apply for a loan with them. You’ll instantly (well, in 24 hour or less) have access to funds that you can use to help grow your business.
How does iwoca make money?
When you take out a loan with iwoca you will either pay interest (if it is a Flexi-Loan) or a one-off fee (for Revenue Based Loans). That’s the primary method for iwoca to earn money, as it earns interest based on how much you borrow. If you use iwocaPay and allow your customers to spread payments over three months, then either you or the customer will pay a fee for this service.
Are there any early repayment fees?
There are no early repayment fees for an iwoca loan — you can pay your funds back as early as you like to minimise interest without being charged for the service. With a Revenue Based Loan there is no interest but you can still repay early with no fees if you just want to clear the debt.
Who is eligible for a Revenue Based Loan?
Any type of business is eligible for a Revenue Based Loan, providing they take card payments. This includes sole traders. You must have been trading for at least three months to quality, make at least £1,000 in revenue and have an online banking account with either Barclays, HSBC, Lloyds, NatWest or Santander.
How long does an application typically take?
Actually applying for a loan with iwoca takes just a few minutes — the process is extremely simple. It takes a little longer to get a result, but almost all decisions are made within 24 hours. Only a handful of cases may need to be referred for extra information. Once a decision is made the funds will be available almost immediately, with Revenue Based Loans paid into your bank account, and Flexi-Loans paid into your iwoca account ready for you to withdraw.
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