365 Business Finance vs iwoca: Which UK Business Finance Provider in 2026?
iwoca edges this matchup in our 2026 UK panel review, scoring 4.4 of 5 against 365 Business Finance on 4.1. iwoca runs flexi-loan / line of credit at £1k to £500k on from 2% per month; 365 Business Finance runs merchant cash advance at £10k to £500k on factor rate 1.10 to 1.40. That said, the right answer depends on ticket size, trading history and sector. 365 Business Finance beats iwoca for hospitality, retail and ecommerce ltds with £20k+ monthly card flow. Read the side-by-side, then jump to the "when X wins" sections for the buyer-fit logic.
Side-by-side
| 365 Business Finance | iwoca | |
|---|---|---|
| Product type | Merchant cash advance | Flexi-loan / line of credit |
| Ticket range | £10k to £500k | £1k to £500k |
| Typical rate | Factor rate 1.10 to 1.40 | From 2% per month |
| Decision time | 24 to 48 hours | Same day to 24 hours |
| Soft search at quote | Yes | Yes |
| Ltd-only? | No | No |
| FCA regulated | Yes | Yes |
| Best for | Hospitality, retail and ecommerce Ltds with £20k+ monthly card flow; £25k+ MCA tickets where the applicant wants a direct lender; Ltd directors who refuse personal guarantees | Working capital and cash-flow-gap files needing flexible draw-down; Newer Ltd companies trading 12 to 24 months; Applicants who want soft search and same-day decision |
| Overall rating | 4.1 / 5 | 4.4 / 5 |
| Last reviewed | 2026-05-10 | 2026-05-10 |
When 365 Business Finance wins
- Direct lender, so the rate the applicant sees is the rate they get with no broker mark-up layered on top.
- PG-free options on some cases, which we use to unblock Ltd directors who refuse personal guarantees.
- Daily or weekly repayment cadence we can match to the applicant cash-flow profile.
- Case-by-case acceptance on missed payments and small CCJs where mainstream term lenders auto-decline.
Best for
Hospitality, retail and ecommerce Ltds with £20k+ monthly card flow, £25k+ MCA tickets where the applicant wants a direct lender, Ltd directors who refuse personal guarantees.
Watch outs
- Sub-£10k tickets are not entertained, so we route smaller asks to iwoca or Capify instead.
- MCA only with no term-loan alternative, so applicants who want fixed monthly payments go to Funding Circle, Allica or Aldermore.
- Factor-rate model means we have to translate to APR for the applicant in the matcher result.
When iwoca wins
- Same-day decisions for most applicants, which keeps the matcher quote-to-funding window short.
- Flexi-loan structure means the applicant only pays interest on what they draw, useful for cash-flow-gap files.
- Soft search at quote keeps the credit file clean while the matcher tests fit.
- Comfortable with sub-2-year trading and lighter credit profiles where Funding Circle declines.
Best for
Working capital and cash-flow-gap files needing flexible draw-down, Newer Ltd companies trading 12 to 24 months, Applicants who want soft search and same-day decision.
Watch outs
- Per-month rate looks low but compounds, which the matcher translates into APR-equivalent for the applicant.
- Lower max ticket than Funding Circle for top-tier borrowers, so £250k+ clean files often route to Funding Circle, Allica or OakNorth.
- Personal guarantee required, which we flag at matcher stage.
FAQ
365 Business Finance or iwoca: which is the better UK business finance provider in 2026?
iwoca scores higher overall in our 2026 UK panel review at 4.4 of 5 versus 4.1 for 365 Business Finance. That said, the right answer depends on what your file looks like. 365 Business Finance is the stronger pick for hospitality, retail and ecommerce ltds with £20k+ monthly card flow, while iwoca is the stronger pick for working capital and cash-flow-gap files needing flexible draw-down. If your file sits in one of those buckets, ignore the headline rating and pick the right fit.
What does each product look like, 365 Business Finance vs iwoca?
365 Business Finance offers merchant cash advance between £10k to £500k at factor rate 1.10 to 1.40, with a 24 to 48 hours decision window. iwoca offers flexi-loan / line of credit between £1k to £500k at from 2% per month, with a same day to 24 hours decision window. 365 Business Finance uses a soft search at quote. iwoca uses a soft search at quote. Verify live commercials before signing because lender pricing moves and bespoke rates are common above £100k tickets.
Which is weakest for what?
365 Business Finance is the wrong answer for sub-£10k tickets, route to iwoca or capify. iwoca is the wrong answer for fixed-term project finance, route to funding circle or allica. If either of those describes your file, look at the side-by-side table for the alternative route, or run the eligibility checker and the matcher will surface the right shortlist from the FundBiz specialty panel.
Can FundBiz help me choose between 365 Business Finance and iwoca?
Yes. We are independent of either lender. The FundBiz specialty panel covers MCA, asset finance, commercial mortgage, bridging, VAT loan, R&D advance and post-decline routes. Tell us ticket size, trading history, sector and any prior declines. We match you against the panel lenders most likely to approve, and if your file needs a post-decline route we surface that explicitly rather than burning credit-file footprint with repeated mainstream applications.
Am I eligible to apply via FundBiz?
FundBiz works with limited companies, LLPs and partnerships of 4 or more partners. Sole traders and partnerships under 4 partners are out of scope and routed elsewhere. Both 365 Business Finance and iwoca sit on our panel for the entity types we serve. Trading history requirements vary by lender, so the matcher pre-screens before sending the file across.
Related comparisons
Other UK specialty finance head-to-heads involving 365 Business Finance or iwoca:
Check eligibility in two minutes
Tell us ticket size, trading history and sector. We match you against the FundBiz specialty panel: MCA, asset finance, commercial mortgage, bridging, VAT loan, R&D advance and post-decline routes. Limited companies, LLPs and partnerships of 4+.
Check eligibility →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-10. Editorial by Best Business Loans Ltd (16833937).