If you’re choosing between iwoca and Capify, you’re really choosing between the cheaper loan and the one you can actually get.
iwoca is the lower-cost, more flexible lender — for limited companies and LLPs with a reasonable credit profile. Capify is the one that says yes to adverse credit, sole traders, and businesses that repay best from their card takings.
We verified every rate, limit and rule below on each lender’s own pages in June 2026, because the gap between what they cost and who they accept is the whole decision.
iwoca vs Capify at a Glance
Pick iwoca if you qualify. Its Flexi-Loan lends to limited companies and LLPs from £1,000 to £1,000,000, you draw and repay as you like, and you pay interest only for the days you hold the money — at a transparent 49% representative APR.
Pick Capify if you’ve been turned down elsewhere. It considers adverse credit and CCJs, lends to sole traders and partnerships, and can repay from your card takings — handy when your cash flow rises and falls with the till.
The catch with Capify is the price.
It quotes a factor rate, not an APR: you agree a fixed total to repay up front, and the effective cost lands well above a bank or iwoca. You pay for access, not for a keen rate.
We checked both lenders’ own pages in June 2026. Both fund within 24 hours, both go to £1,000,000, and both want a personal guarantee. Neither loan is FCA-regulated or FSCS-protected — that’s normal for commercial lending.
The Core Difference Between iwoca and Capify
The core difference is who each lender accepts, and how each one prices the money.
iwoca lends only to incorporated businesses — limited companies and LLPs — with a reasonable credit profile, and it quotes an APR you can compare against any other loan. It’s the cheaper, cleaner option for a business that fits.
Capify is built for the businesses iwoca turns away. It weighs your card turnover and cash flow rather than a spotless credit file, takes sole traders, and prices on a factor rate — a fixed fee agreed up front rather than an interest rate that unwinds if you repay early.
So the question isn’t simply “which is cheaper” — iwoca almost always is. It’s whether you qualify for iwoca at all. If you do, it wins. If your credit or your structure rules you out, Capify is the realistic route.
iwoca vs Capify Compared
| Feature | iwoca | Capify |
|---|---|---|
| Pricing | 49% APR representative (interest for days used) | Factor rate (fixed total agreed up front) |
| Amount | £1,000 – £1,000,000 | £5,000 – £1,000,000 |
| Structure | Revolving Flexi-Loan (draw/repay/redraw) | Fixed-term loan or card-takings advance |
| Who can apply | Limited companies & LLPs only | Sole traders, partnerships & limited companies |
| Credit profile | Reasonable profile via Open Banking | Adverse credit & CCJs considered |
| Eligibility | UK Ltd/LLP, business bank account | 12+ months trading, £10k+ monthly turnover |
| Speed | Decision in 24 hours; Open Banking | Same-day approval; funds in 24 hours |
| Early repayment | No fee (saves interest) | No fee (agreed total usually stands) |
Differences That Actually Matter
Start with credit, because it decides who gets in. Capify actively considers adverse credit, CCJs and past declines; iwoca wants a reasonable profile and reads it through Open Banking.
Then structure. iwoca’s Flexi-Loan is a revolving facility — draw, repay and redraw without reapplying. Capify lends a fixed-term lump sum, or a merchant cash advance you repay as a slice of your daily card takings.
That repayment shape matters if your trade is seasonal. When a quiet month hits, Capify’s card-takings model shrinks the repayment with your sales, easing your cash flow; iwoca’s Flexi-Loan lets you clear the balance early and stop the interest.
Next, who can apply. iwoca is limited companies and LLPs only. Capify takes sole traders and partnerships too, provided you’ve traded 12 months and turn over at least £10,000 a month (or £20,000 in card sales for the cash advance).
That’s the real split: iwoca is cheaper and more flexible for the businesses it accepts; Capify reaches the businesses iwoca won’t — at a price.
Pricing and Cost Comparison
On cost, iwoca wins for almost everyone who qualifies. Its 49% representative APR looks steep, but you pay interest only for the days you borrow, there’s no fee on a 12-month loan, and no charge for repaying early.
Capify prices differently, and that’s the part to understand. It quotes a factor rate, typically 1.1 to 1.5: borrow a sum and you repay a fixed multiple of it, whatever happens.
Say the factor is 1.3 on £20,000 — you repay £26,000, and that total doesn’t shrink if you clear it early the way interest does.
Add a processing fee of £249 to £649 and a monthly service fee of £24.90, and the effective APR can climb past 60% — well above iwoca.
That’s the trade-off in plain terms. Capify isn’t trying to be cheap; it’s trying to say yes. For a business with adverse credit or no other offer on the table, expensive money beats no money when your payroll still has to run.
Neither lender charges you to repay early, but the saving differs. Clear an iwoca loan early and you genuinely cut the interest; clear a Capify advance early and the agreed total usually stands. We’d model the real cost before signing either.
Application and Workflow
Both move fast, and both can fund within 24 hours. The difference is what each one looks at when you apply.
iwoca runs on Open Banking. A soft eligibility check won’t touch your credit score, and once you connect your account feed a decision can land inside 24 hours — useful when a supplier won’t wait for your next invoice to clear.
Capify leans on a person, not just an algorithm. A dedicated account manager weighs your card turnover and cash flow, structures the repayment around your trade, and can approve a case a credit-scored lender would auto-decline.
For a sole trader the choice is made for you — iwoca won’t start the application, and Capify will. For an incorporated business with clean numbers, iwoca’s self-serve flow is quicker and cheaper than a brokered Capify deal.
Which Should You Choose?
For any limited company or LLP that qualifies, iwoca is the call. We rate it ahead on cost, on transparency, and on the flexibility to draw and repay as your cash flow moves.
For everyone iwoca declines, Capify is the answer. Adverse credit, a CCJ, a sole-trader structure, or a card-heavy business that wants to repay from the till — these are exactly the cases Capify is built to fund.
Think about your starting point honestly. If your credit is sound and you’re incorporated, don’t pay Capify’s factor rate when iwoca will lend cheaper. If you’ve been turned down, Capify’s yes is worth more than a keener rate you can’t get.
And if you qualify for a bank or Funding Circle, check there first — both undercut iwoca and Capify on rate. These two are for speed, flexibility and access, not for the cheapest money on the market.
iwoca vs Capify: Quick Answer
iwoca is cheaper and more flexible, but lends only to limited companies and LLPs with a reasonable credit profile — 49% representative APR, £1,000 to £1,000,000, interest only for days used.
Capify lends to sole traders and adverse-credit businesses and can repay from card takings, but prices on a factor rate that costs more.
If you qualify for iwoca, take it and pay less. If your credit or your structure rules you out — or your cash flow rises and falls with your card sales — Capify is the realistic route, as long as you accept the higher cost for the access.
Frequently Asked Questions
Is iwoca or Capify cheaper?
iwoca is almost always cheaper for a business that qualifies. It quotes a 49% representative APR and charges interest only for the days you hold the money, with no fee on a 12-month loan. Capify prices on a factor rate — a fixed total agreed up front — plus possible processing and service fees, which usually pushes the effective cost well above iwoca. You pay Capify for access, not for a low rate.
Does iwoca or Capify lend to sole traders or adverse credit?
Capify does both: it lends to sole traders, partnerships and limited companies, and actively considers adverse credit and CCJs. iwoca lends only to limited companies and LLPs and wants a reasonable credit profile, so a sole trader or a business with serious credit problems will usually need Capify or a specialist instead.
What is a factor rate, and how does it differ from an APR?
A factor rate is a fixed multiple of the amount you borrow. Borrow £20,000 at a factor of 1.3 and you repay £26,000 in total, regardless of how quickly you clear it. An APR, which iwoca uses, expresses the cost as an annual percentage and falls if you repay early. Factor-rate pricing is simple to read but usually works out more expensive, and harder to compare against an APR loan.
How quickly can each lender pay out, and what do I need?
Both can fund within 24 hours. iwoca decides through Open Banking after a soft check that won’t affect your credit score; Capify approves through a dedicated account manager who weighs your card turnover and cash flow. Capify asks for 12 months’ trading and at least £10,000 monthly turnover (or £20,000 in card sales for a cash advance). Both require a personal guarantee.
Are iwoca and Capify regulated and protected?
Neither product is covered by the FSCS, and lending to a limited company is generally outside FCA consumer-credit regulation. iwoca Ltd is FCA-registered for payment services (FRN 791804). Capify Ltd is FCA-authorised (FRN 720390), though its business loans and merchant cash advances are commercial finance that sits largely outside consumer-credit rules. Both still require a personal guarantee, which makes a director personally liable.
Methodology
How We Reviewed This Comparison
What we compared. We assessed iwoca and Capify on pricing model, amount, structure, eligibility, credit appetite, speed and repayment flexibility for UK business borrowers.
Data sources. We verified every figure directly on iwoca.co.uk and capify.co.uk in June 2026. Capify prices each deal on a factor rate rather than a published APR, so we describe its cost structure and illustrate it rather than quote a single headline rate.
Update cadence. We re-verify rates, eligibility and fees on this page at least quarterly and whenever a lender changes terms. Some links are affiliate links; see our editorial policy.