Capify 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 Capify on 4.0. iwoca runs flexi-loan / line of credit at £1k to £500k on from 2% per month; Capify runs merchant cash advance + term loan at £3.5k to £500k on factor rate 1.15 to 1.45. That said, the right answer depends on ticket size, trading history and sector. Capify beats iwoca for hospitality, retail and salon ltds with strong card-machine flow. Read the side-by-side, then jump to the "when X wins" sections for the buyer-fit logic.
Side-by-side
| Capify | iwoca | |
|---|---|---|
| Product type | Merchant cash advance + term loan | Flexi-loan / line of credit |
| Ticket range | £3.5k to £500k | £1k to £500k |
| Typical rate | Factor rate 1.15 to 1.45 | From 2% per month |
| Decision time | Same day | Same day to 24 hours |
| Soft search at quote | Yes | Yes |
| Ltd-only? | No | No |
| FCA regulated | Yes | Yes |
| Best for | Hospitality, retail and salon Ltds with strong card-machine flow; Post-decline files where mainstream term lenders blocked on credit history; Sub-12-month trading Ltds with 6+ months of card history | 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 | 4.0 / 5 | 4.4 / 5 |
| Last reviewed | 2026-05-10 | 2026-05-10 |
When Capify wins
- Repayments scale with daily card sales, which we match to seasonal applicants who cannot service a fixed monthly burden.
- More accommodating on credit history than mainstream term-loan lenders, which is why declined-by-Funding-Circle files often route here first.
- Same-day decisions and funding, which matters for HMRC pressure and supplier-pay deadlines.
- Specialism in hospitality and retail, so SIC-code routing in the matcher leans heavily on Capify for those verticals.
Best for
Hospitality, retail and salon Ltds with strong card-machine flow, Post-decline files where mainstream term lenders blocked on credit history, Sub-12-month trading Ltds with 6+ months of card history.
Watch outs
- Factor rate disguises true APR, which we translate at matcher stage so the applicant sees the all-in cost.
- Tied to card-machine sales, so B2B service Ltds with no card terminal route to invoice finance or asset finance instead.
- Daily repayment model can pinch cashflow for seasonal businesses, route to a Funding Circle term loan if monthly is essential.
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
Capify 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 4.0 for Capify. That said, the right answer depends on what your file looks like. Capify is the stronger pick for hospitality, retail and salon ltds with strong card-machine 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, Capify vs iwoca?
Capify offers merchant cash advance + term loan between £3.5k to £500k at factor rate 1.15 to 1.45, with a same day 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. Capify 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?
Capify is the wrong answer for b2b ltds with no card flow, route to invoice finance or asset finance. 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 Capify 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 Capify 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 Capify 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).