Capify and iwoca both market business funding with relatively quick application processes. The useful comparison is what each actual offer costs and how its repayments fit your business. A fast decision is only one part of the process; it does not establish that funds will arrive by a specific supplier deadline.
Check the remaining approval steps in our guide, Business Loan Pre-Approval UK: Soft Checks vs Final Approval.
Compare the repayment structures in our guide, Short-Term Business Loans UK: Compare 3–18 Month Options.
Compare equal net amounts, the same intended use and realistic repayment dates. Pay particular attention to frequent collections versus a loan schedule, early-settlement calculations and personal guarantees.
Compare the products offered, not only the providers
| Question | Capify | iwoca |
|---|---|---|
| Which product is being quoted? | Confirm the specific business loan or other facility | Confirm the specific Flexi-Loan offer and term |
| What usable cash arrives? | Deduct any fees or old balance cleared | Deduct any fees or old balance cleared |
| How are payments collected? | Confirm frequency and exact schedule | Confirm the agreed loan schedule |
| What happens on early settlement? | Request a written payoff calculation | Compare remaining interest and applicable fees |
| What personal obligations apply? | Read the guarantee and security documents | Read the guarantee and security documents |
Do not combine features from a provider’s different products. A broker-distributed offer, secured loan and short-term facility may have different conditions even when they carry the same brand.
What Capify publishes
Capify’s small-business-loan page advertises funding from £10,000 to £3 million. Its underwriting criteria identify a UK-registered business, at least twelve months of trading and monthly turnover of £10,000 among the published requirements. Minimums do not guarantee approval or the maximum advertised amount.
Capify’s FAQ describes daily or weekly repayments and personal guarantees. Ask for the frequency and dates applying to your own offer; a small daily amount can add up to a substantial monthly cash commitment.
Its fees page carries an older update date. Treat that page as a reason to request a complete current fee breakdown, rather than assuming it is a definitive quotation for today’s application.
What iwoca publishes
Check the legal structure against the current application page: iwoca’s main UK business-loan page lists limited companies and limited liability partnerships. Its support FAQ uses the broader word “partnerships”, so an ordinary partnership should obtain confirmation rather than infer eligibility from that wording.
The iwoca Flexi-Loan page advertises £1,000 to £1 million and says interest is charged on the outstanding balance for the days it is used, with no early-repayment fee. It also warns that longer borrowing can include an additional funding fee.
The iwoca support FAQ lists UK limited companies and partnerships as eligible business types and requires a director’s personal guarantee for limited companies. Confirm the exact product, rate and fees in the personalised offer.
Published ranges are not a price comparison. Your available amount and terms depend on assessment, and the two providers may offer different amounts or repayment periods.
Translate every offer into usable cash and total payments
Start with the money that reaches your bank account. If an arrangement fee is deducted, the gross facility can be larger than the cash available to spend. If a top-up clears existing funding, separate that settlement from new working capital.
Next, total all compulsory payments under the proposed schedule. Include interest, fixed finance charges and administration or arrangement fees. If a broker is involved, ask whether a separate broker fee applies and how commission is handled.
Then calculate the payment burden by week and month. For frequent collections, use the actual calendar and contractual collection days rather than multiplying a daily amount by an arbitrary thirty days.
A £200 payment every business day would be £1,000 in an illustrative five-collection week. It is not equivalent to £200 per month. The exact monthly total depends on the schedule and any holiday treatment specified in the agreement.
A hypothetical equal-cash comparison
Suppose a business requires £18,000 for stock. These invented offers are not Capify or iwoca quotations.
| Item | Offer A | Offer B |
|---|---|---|
| Net money received | £18,000 | £18,000 |
| Number of scheduled payments | 26 weekly payments | 6 monthly payments |
| Payment amount | £800 | £3,500 |
| Total scheduled payments | £20,800 | £21,000 |
| Financing cost, assuming no other charges | £2,800 | £3,000 |
Offer A has a £200 lower total cost, but the weekly collections may fall before a large customer receipt. Offer B requires the business to retain enough cash for the monthly due date. Neither is automatically easier to manage.
If the business receives most customer cash at month end, map every payment onto a weekly bank-balance forecast. An apparently affordable monthly average can conceal a shortfall in the second week.
Now ask each provider for settlement figures after three months. Do not assume either offer’s scheduled total equals its early-settlement amount. The difference between fixed charges and interest linked to outstanding borrowing can materially change the comparison.
Compare speed without treating marketing as a deadline
Separate an eligibility indication, a credit decision, acceptance of documents and cleared funding. A quick initial response can still be followed by identity checks, bank-data requests or clarification of existing finance.
If a supplier requires a deposit by Friday, ask when the provider expects cleared funds after all conditions are satisfied. Keep the supplier informed and avoid a non-refundable commitment based only on an application submission.
Prepare information accurately the first time: company details, ownership, bank statements, trading figures and existing commitments. An unexplained change in turnover or a missing document can make a simple application take longer.
Do not omit relevant obligations to obtain a quicker answer. A fast offer based on incomplete information is not a reliable funding plan.
Check early repayment and top-ups separately
If you expect to repay from a customer invoice or seasonal sales peak, use a cautious date. Ask what is payable if that receipt arrives on time and if it is delayed.
For interest-bearing borrowing, find out how the balance and payment dates affect interest. For fixed-fee borrowing, find out whether a rebate exists. A promise of no extra early-repayment penalty is different from a reduction in the original charge.
Treat future top-ups as uncertain. Ask whether additional borrowing needs a fresh assessment and whether it changes the fee, rate, payment schedule or guarantee. Do not rely on a future offer to cover a known tax or supplier bill.
Consider guarantees and the weak-trading case
Read the personal guarantee alongside the loan contract. Identify the guarantor, liability limit, obligations covered and circumstances in which the provider can demand payment. Check whether future borrowing is included.
Then stress-test the business itself. Reduce expected sales, allow for slower stock turnover and retain normal wages, rent and tax provisions. If the resulting bank balance cannot support payments, consider a smaller purchase, staged funding or a different structure.
“Unsecured” does not mean that a director cannot face a personal claim under a guarantee. Equally, a guarantee should not be assessed solely by its headline limit without understanding the contract. Obtain independent advice where needed.
Review the guarantee questions in our guide, Fast Business Loans Without a Personal Guarantee UK.
Which option may suit your situation?
A business seeking a defined amount for a short period should focus on net proceeds and early-settlement cost. A company needing to preserve weekly cash should focus on collection timing and its lowest forecast balance. A business purchasing a long-lived asset should compare asset finance or a longer repayment structure as well.
For a small funding need below a provider’s published minimum, do not increase the borrowing simply to qualify. Compare a product sized for the actual requirement.
For a recurring operating deficit, investigate the cause before adding finance. Borrowing can cover timing differences, but it cannot make permanently unprofitable trading sustainable.
Frequently asked questions
Which provider is cheaper?
Only comparable written offers can answer that. Use net cash, full cost and the same expected repayment period. Include any fees remaining on early settlement.
Can I apply to both?
You can compare available routes, but first ask what credit checks are performed and at which stage. Disclose existing and pending commitments, and avoid accepting overlapping facilities without checking affordability and restrictions.
Does an advertised maximum mean my business can obtain it?
No. The amount offered depends on underwriting and the business’s circumstances. A product range is not an approval promise.
Should I choose the fastest offer?
Only if its cost, payment schedule and obligations are suitable. A short supplier deadline does not remove the need to assess the agreement.
Choose using the repayment plan
Capify and iwoca should be compared through their current offers, not headline speed or maximum funding. Identify the usable cash, full charges, early-settlement amount and personal obligations, then check that the business can keep trading comfortably after payments.
To discuss your requirement with Mehmi Financial Group, contact the team with the amount, intended use and current commitments. Confirm support for your location and circumstances. This comparison does not imply a partnership with either provider or guarantee approval.