Does iwoca Offer Invoice Finance?
The Short Answer
No, as far as we can find: iwoca does not sell invoice finance. Its public product pages on 5 October 2026 show no invoice-finance facility. It publishes a large library of invoice-finance articles, but the products it sells are the Flexi-Loan, a business credit card and iwocaPay. iwoca’s own support material says of iwocaPay that “we don’t purchase or take control of invoices”, which is precisely what rules it out as invoice finance. If you want money from iwoca, the Flexi-Loan is the product. If you want cash advanced against a specific unpaid invoice, you need a dedicated invoice-finance provider.
Search almost any invoice-finance term and iwoca’s guides come back near the top, several of them carrying the advance rates and fee ranges you would expect on a product page. Reading those as iwoca’s own terms is an easy mistake, and we made it: an earlier version of this review priced an iwoca selective facility down to the advance percentage and the management fee. We have taken those figures down rather than restate them with a fresh date on top.
The standard we now apply is plain. A provider’s guide to a product shows what that provider says about the market, not that it sells one. Before calling a facility somebody’s product we want a product page with its own call to action, an application route that reaches it, or support documentation naming it as theirs. For iwoca and invoice finance we found none of the three.
What iwoca Currently Offers
iwoca’s product navigation on 5 October 2026 lists three things: business loan, credit card and iwocaPay. Here is where each product stands, and the source that settles it.
| Product or facility | Status | What the evidence shows | Primary source |
|---|---|---|---|
| Flexi-Loan (business loan) | Current product | Product page with a live application route. £1,000 to £1,000,000; rates from 1.5% per 30 days. | iwoca.co.uk/flexi-loan |
| Business credit card | Current product | In the main product navigation. Cards issued by Enfuce UK Limited rather than by iwoca itself. | iwoca.co.uk |
| iwocaPay | Current product | Support-centre documentation. Customers pay now or over 1, 3 or 12 months; you are paid at checkout. | support.iwoca.co.uk |
| Invoice factoring | No current product identified | Explained at length in iwoca’s articles. No product page, no application route, no facility terms. | iwoca.co.uk/invoice-finance |
| Invoice discounting | No current product identified | Same position as factoring: editorial coverage only. | iwoca.co.uk/invoice-finance |
| Selective or single-invoice finance | No current product identified | iwoca publishes a guide to it. The commercial call to action on that hub opens a business loan application. | iwoca.co.uk/invoice-finance/selective-invoice-finance |
The Flexi-Loan’s published terms run from one day to five years.
Product status checked: 5 October 2026. Method: BusinessExpert review of iwoca’s product navigation, product pages, support centre and legal pages.
The hub itself is the clearest signal. It runs articles on factoring, selective finance, construction invoice finance and recruitment factoring, and the commercial block among them is headed “Business funding, on your terms” with a Get started button that opens a business loan application. A lender that wanted your invoice-finance business would not send you to a loan form. None of this means iwoca never offered such a facility or could not launch one. It means the estate we inspected does not evidence one now, and we will not price a product we cannot find.
iwoca vs Invoice Finance at a Glance
Three things get confused here, understandably, because all three put money in your account sooner than the customer would. What separates them is where the money comes from and who repays it.
| iwoca Flexi-Loan | iwocaPay | Invoice factoring or discounting | |
|---|---|---|---|
| What it is | A revolving business loan | A payment option you offer your customer | Funding advanced against your receivables |
| Source of the money | iwoca lends it to you | iwoca pays you and collects from your customer | The lender advances against the invoice |
| Tied to a specific invoice? | No | Yes, at the point of sale | Yes |
| Is the invoice bought or assigned? | No | No, iwoca states it does not purchase or take control of invoices | Yes, usually assigned to the lender |
| Who repays | You, on a monthly schedule | Your customer, to iwoca | Your customer, then the balance settles |
| Does your customer see it? | No | Yes, they choose it at checkout | Factoring yes, confidential discounting no |
| Who carries the bad-debt risk | You. The loan is due whatever your customer does | iwoca, once your customer is approved | You, unless the facility is non-recourse |
Flexi-Loan
The Flexi-Loan is iwoca’s main funding product, and the one every application route on the site leads to. You draw what you need from an agreed limit, interest runs only on the balance outstanding for the days you hold it, and repaying early costs nothing. It is still a loan: the customer never enters the arrangement, and repayments fall due whether or not they have paid.
iwocaPay
iwocaPay works at the checkout rather than after an invoice has gone unpaid. The customer chooses to pay now or spread the cost over one, three or twelve months, you are paid at checkout, and iwoca carries their repayments and their credit risk. iwoca is unusually direct about why this is not invoice finance: it does not purchase or take control of the invoice. You are offering a payment method, not borrowing against a debt already owed.
Invoice Factoring and Discounting
Invoice finance proper starts from a debt that already exists. A lender advances a percentage of an invoice raised for completed work, then settles the balance, less fees, once the customer pays. With factoring the lender chases payment and the customer knows; with confidential discounting you keep credit control and they are none the wiser. Either way the receivable does the borrowing, which puts the advance within reach of businesses whose own balance sheet would not support a loan of the same size.
Can You Use iwoca to Cover Unpaid Invoices?
Yes, and this is the question most people are really asking. The cash gap is the problem; invoice finance is only one way to close it.
How the Flexi-Loan Can Bridge an Invoice Payment Gap
Take a £10,000 invoice on 60-day terms for work finished last month. Your customer is not late and is not disputing anything: their finance team runs a payment run on the last Friday of the month, and yours missed it. Payroll lands on the 28th regardless. A Flexi-Loan closes that gap by lending against your business rather than the invoice: you draw £10,000, meet payroll, and clear the balance when the payment arrives. Because interest runs only for the days you hold the money, a draw you clear in five weeks costs about five weeks of interest.
Why This Is Not Invoice Finance
The difference shows up when things go wrong. The invoice stays entirely yours, the customer never learns you borrowed, and the debt sits on your balance sheet as a loan. If they pay late, repayments carry on to the same schedule; if they never pay at all, you still owe iwoca the full amount plus interest. Invoice finance moves part of that mechanism onto the receivable, and a non-recourse facility moves part of the bad-debt risk onto the lender.
When Invoice Finance May Be More Suitable
A loan is priced on your business; an advance is priced largely on the customer’s. Invoice finance therefore wins in two situations: when your customers are stronger credits than you are, common for young companies supplying large corporates or the public sector, and when the gap is the permanent shape of your trading rather than a one-off.
How Much Does Using iwoca for an Invoice Cash-Flow Gap Cost?
Current iwoca Rates
iwoca advertises rates from 1.5% per 30 days, but the number to plan around is the one in its representative example: 3.33% per 30 days, or 49% APR representative, which by definition at least 51% of successful applicants get or better. Terms of twelve months or less carry no arrangement fee; longer borrowing adds around 5% for 13 to 24 months and 6% beyond. On iwoca’s own example, £10,000 over twelve months repays £12,294. Eligibility, security and application detail sit on our iwoca business loan review.
Flexi-Loan pricing checked: 5 October 2026, from iwoca.co.uk/flexi-loan and iwoca.co.uk/small-business-loans.
£10,000 30-Day Example
We modelled a single £10,000 draw, held in full and cleared in one payment when the invoice lands, against the same invoice funded selectively by Triver, one of the few UK selective providers publishing a rate we could calculate with. Triver charges from 0.06% a day on the amount advanced and typically advances 99%, so the fee runs on about £9,900.
| £10,000 held for 30 days | Cost | As a share of the invoice |
|---|---|---|
| iwoca Flexi-Loan at 1.5% per 30 days (best advertised rate) | £150 | 1.5% |
| iwoca Flexi-Loan at 3.33% per 30 days (representative rate) | £333 | 3.3% |
| Triver selective advance at 0.06% a day on £9,900 | £178 | 1.8% |
At iwoca’s advertised best rate the loan is cheaper. At the rate most borrowers actually get, it is roughly twice the price of the selective advance. That reversal is the most useful thing on this page, and it is invisible if you set the two headline rates side by side.
60-Day and 90-Day Cost Comparison
Stretch the same £10,000 across longer terms and the gap widens, because both products charge for time rather than for the event.
| Days held | Flexi-Loan at 1.5% / 30 days | Flexi-Loan at 3.33% / 30 days | Triver at 0.06% a day |
|---|---|---|---|
| 30 days | £150 | £333 | £178 |
| 60 days | £300 | £666 | £356 |
| 90 days | £450 | £999 | £535 |
Checked: 5 October 2026. Sources: iwoca.co.uk, triver.com. Method: Business Expert calculation. We assume the full £10,000 is drawn on day one and cleared in one payment, with no fee, which holds for any term of twelve months or less. A Flexi-Loan repays monthly in practice, so clearing it the day the invoice arrives costs slightly less than shown. Both rates are starting rates, so both flatter the best-qualified applicant.
Whole-ledger factoring and discounting will not sit in this table honestly, so we left them out. Their cost is a discount margin over base rate plus a service fee, usually with a minimum monthly charge and a notice period, and the arithmetic only works across a full sales ledger over a year.
iwoca vs Selective Invoice Finance
Ownership of the Invoice
The invoice never leaves you under a loan; it stays on your ledger and the debt sits alongside it. Selective finance takes an assignment of that specific invoice, which is what lets the lender price on your customer’s creditworthiness rather than yours.
Repayment
A loan repays on a calendar; an advance repays on an event, the day the customer settles. Where a customer reliably pays at day 55 of a 30-day term, the advance absorbs that quietly. The loan does not, and the second monthly repayment comes out of other money.
Customer Involvement
A Flexi-Loan is invisible to the customer. Selective finance varies: some providers collect directly, others leave collections with you. On an invoice to your largest client that distinction is worth settling before you apply, because the answer differs by provider and is not always on the website.
Costs
Loan pricing follows your accounts, credit file and trading history. Selective pricing follows the debtor, the invoice term and how long the money is out. Neither is reliably cheaper, as the table above shows, but a loan gets steadily dearer the longer the gap lasts, while an advance is at least sized to the thing causing it.
Credit Risk
This is the sharpest difference and the one most often glossed over. A loan leaves the whole bad-debt risk with you: if the customer fails, you have lost the sale and still owe the money. Recourse invoice finance does much the same. Non-recourse finance shifts that loss to the lender and charges for it. Ask which you are being offered, and get it in the offer letter rather than the sales call.
Best Invoice Finance Alternatives to iwoca
Every provider below was checked against the standard we applied to iwoca: a live product page, a route into an application, and terms the provider states itself.
Kriya
Kriya funds individual invoices for completed work, advancing up to 90% and paying out within 24 hours. Eligibility is the tightest thing it publishes (twelve months of trading and one set of filed accounts), which rules out the young companies that most often come looking. It publishes no rate card, so the cost only appears after a call. Common enough in this market, and still an obstacle when two options have to be compared in an afternoon.
Bibby Financial Services
Bibby is the established whole-ledger specialist, funding more than 8,500 businesses across the UK, Europe and Asia across factoring, confidential discounting and sector facilities for construction, recruitment and export. It advances up to 85% of invoice value, usually within 24 hours of the facility being set up. Read that 85% as a share of approved eligible debt, not of everything invoiced: credit limits, concentration caps, ageing rules and disputed items come off first, and the drawable figure routinely lands well below the headline. Bibby is heavy machinery for one late invoice.
Other Providers to Compare
Triver is the most transparent selective provider we found: 0.06% a day on the amount advanced, a minimum charge of ten days’ fees or £18, and an advance of about 99% on terms of 10 to 120 days. It funds invoices to UK limited companies, LLPs, public sector bodies and large overseas corporates, but not to consumers or sole traders. Close Brothers sits at the traditional, relationship-managed end. If you would rather not approach them one at a time, Tide Funding Options puts one application in front of a panel of invoice finance lenders without marking your credit file. We compare the field ourselves in our roundup of the best invoice finance companies, and explain the mechanics in our guides to invoice factoring and selective invoice finance.
iwoca vs Kriya for Unpaid Invoices
This gets asked as though it were two invoice-finance providers head to head. It is a working-capital loan against a selective invoice advance, and the choice is really about whose credit does the work.
| iwoca Flexi-Loan | Kriya invoice finance | |
|---|---|---|
| Structure | Revolving business loan | Advance against a specific invoice |
| Priced on | Your business | Largely your customer |
| Advance | Not applicable: you borrow a sum | Up to 90% of the invoice |
| Published pricing | From 1.5% per 30 days; 49% APR representative | Not published |
| Speed | Typically within hours of approval, says iwoca | Within 24 hours |
| Trading history | Not published as a fixed threshold | 12 months and one set of filed accounts |
| Repaid by | You, monthly | Your customer settling the invoice |
If your accounts are thin but you invoice blue-chip customers, Kriya has more to work with than iwoca does. If you have a solid trading record and the need is general rather than tied to one debtor, the loan is simpler and its price is at least published before you speak to anyone.
Who Should Consider iwoca Instead of Invoice Finance?
iwoca suits you when the need is working capital rather than money against a named receivable: stock ahead of a busy quarter, a VAT bill in an awkward week, a supplier wanting payment before the shipment moves. It suits you too when confidentiality matters, because nothing about a Flexi-Loan reaches your customers. Two conditions apply: iwoca lends to limited companies and limited liability partnerships, so sole traders and ordinary partnerships must look elsewhere, and the price only makes sense over short holding periods.
Who Should Choose Invoice Finance Instead?
Choose invoice finance when the unpaid invoices are the business problem rather than a symptom of it: your customers are better credits than you are, the ledger turns over continuously so the gap never closes, or the sums exceed what an unsecured loan will stretch to.
The shape then matters. Selective finance fits an occasional large invoice and leaves the rest of the ledger alone. Factoring hands over credit control, a relief if chasing payment is eating your week and a problem if you would rather customers only ever heard from you. Confidential discounting keeps the relationship with you and expects a more established business in return. Our invoice finance guide works through the choice.
Is iwoca Regulated?
FCA Registration
Partly, and the detail is worth getting right because the reference number gets quoted far more loosely than it should be. iwoca Ltd states that it “is registered with the Financial Conduct Authority under the Payment Services Regulations 2017 [reference number: 791804] for the provision of payment services”. That is a registration for payment services, not authorisation for lending.
Commercial lending to a limited company generally sits outside the FCA’s consumer credit regime altogether: the ordinary position for UK business finance, and nothing peculiar to iwoca. iwoca Limited is incorporated in England and Wales, company number 07798925, and its credit cards are issued by Enfuce UK Limited, a separately authorised firm with FRN 993783. One reference number does not place every product a firm sells inside the perimeter.
Complaints and Financial Ombudsman Eligibility
iwoca takes complaints on 020 3778 0274 or at complaints@iwoca.co.uk, acknowledges them the same or next working day, and says most settle within two weeks. If that fails, iwoca says you “might be able to” refer the matter to the Financial Ombudsman Service. That hedge is accurate rather than evasive.
The Ombudsman takes small-business complaints where turnover is under £6.5m and the business either employs fewer than 50 people or has a balance sheet total under £5m. The activity complained about must also fall within its jurisdiction, which unregulated commercial lending may not, so check both tests before relying on it. The Business Banking Resolution Service, which older reviews still list as a route, stopped taking new cases in 2024.
Final Verdict: Should You Use iwoca to Cover Unpaid Invoices?
For a one-off gap, yes, with your eyes open. A Flexi-Loan bridges a slow invoice perfectly well: the money moves quickly, interest runs only for the days you hold it, and clearing early costs nothing. Over 30 days on £10,000 that is roughly £150 to £333 depending on the rate offered, and for most businesses it lands nearer the top of that range.
What you are not doing is buying invoice finance. The invoice stays yours, the risk stays yours, and if the customer never pays, the loan is still due in full. Where the whole ledger is the problem, or where your customers are stronger credits than your own accounts, a genuine facility is the better structure and a loan is the wrong tool applied harder.
We rate iwoca a competent short-term working-capital lender that has been miscast (by us among others) as an invoice financier on the strength of its content marketing. Judged as what it is, it holds up: 4.7 out of 5 from 13,173 Trustpilot reviews as at 5 October 2026, fast decisions, no penalty for early repayment. Judged as an invoice financier we cannot assess it at all, because we could not find the product.
Frequently Asked Questions
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Does iwoca do invoice factoring?
No current iwoca factoring product was identified when we checked on 5 October 2026. iwoca publishes a detailed guide to invoice factoring, and that guide is what surfaces in search results, but there is no factoring product page, no application route and no facility terms behind it. The commercial call to action on iwoca’s invoice-finance hub opens a business loan application.
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Does iwoca buy invoices?
Not through any product we could verify. iwoca states of iwocaPay that “we don’t purchase or take control of invoices”, and the Flexi-Loan is an ordinary business loan that leaves the invoice on your own ledger. If you need an invoice bought or assigned, that is a dedicated invoice-finance facility and you will need a provider that offers one.
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Is iwocaPay invoice finance?
No, and iwoca says so itself. With iwocaPay your customer chooses at checkout to pay now or spread the cost over 1, 3 or 12 months, you are paid straight away, and iwoca collects from them. The invoice is never purchased or assigned, so the mechanism is a payment option you offer your customer rather than borrowing against a debt they already owe you.
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Can iwoca fund an unpaid invoice?
Indirectly, yes. A Flexi-Loan can bridge the gap while you wait, and you can clear it the day the payment lands without an early repayment charge. The distinction matters if the invoice goes bad: the loan is priced on your business, secured on your business, and still repayable in full if your customer never pays.
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Is iwoca cheaper than invoice finance?
It depends which iwoca rate you are offered. On a £10,000 invoice held 30 days, a Flexi-Loan at iwoca’s advertised 1.5% per 30 days costs about £150, against roughly £178 for a selective advance from Triver at its published 0.06% a day. At iwoca’s 3.33% representative rate the same loan costs about £333, which is close to twice the advance. Checked 5 October 2026; Business Expert calculation.
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What is the best invoice-finance alternative to iwoca?
For a single large invoice, Kriya and Triver both fund selectively and pay out within 24 hours, with Triver the more transparent on price and Kriya requiring twelve months of trading and filed accounts. For a whole sales ledger, Bibby Financial Services is the established specialist, advancing up to 85% of approved eligible debt. Our best invoice finance companies guide compares the current field.
How We Checked This Page
This page was rebuilt on 25 August 2026 because its previous version reviewed an iwoca selective invoice-finance facility we can no longer evidence. We treated product pages, application routes, support-centre documentation and legal pages as evidence of what iwoca sells, and we treated iwoca’s own invoice-finance articles as evidence only of what iwoca says about the market. That separation is the whole method here, and applying it is what changed the answer.
Product status was established from iwoca’s product navigation, its Flexi-Loan and small-business-loan pages, the iwocaPay support article and the iwoca terms of use. Flexi-Loan pricing, fees and the representative example were re-verified on 5 October 2026 from iwoca.co.uk rather than carried over from the previous version, which had gone stale at a 12.35% representative APR against a current 49%. Regulatory scope comes from iwoca’s own terms of use, the complaints route from its complaints page, and Financial Ombudsman eligibility from the Ombudsman’s published thresholds. Trustpilot figures were checked on 5 October 2026 and describe iwoca as a brand and a lender; no customer review can tell you about a product we could not find.
Alternatives had to clear the same bar we applied to iwoca. Kriya, Triver and Bibby Financial Services each publish a live invoice-finance product page with a route into an application, and every figure attributed to them here is one they publish themselves. Where a provider does not publish its pricing, we have said so rather than filled the gap with a market range. The cost model is our own calculation from published rates, and its assumptions are stated beside it.
Product status checked: 5 October 2026. Flexi-Loan pricing checked: 5 October 2026. Trustpilot checked: 5 October 2026. iwoca invoice finance: not verified from the current public product estate.
Commercial disclosure. We have no affiliate relationship with iwoca, and iwoca pays us nothing for this review. The Tide Funding Options links on this page are affiliate links: if you use one to gather quotes, we may earn a commission, at no cost to you. That income does not change what this review says. See our editorial policy.