Head to head
iwoca vs Propel: Which UK Business Finance Provider in 2026?
Side by side: what each lender offers UK limited companies and LLPs, and what each one publishes.
Free · 2 mins
Start here · What do you need?
What iwoca offers: flexi-loan / line of credit. Ticket range: £1k to £1m (its own figure). Rate: from 1.5% per 30 days. What Propel offers: asset finance (hire purchase and lease). Ticket range: from £500 to facilities over £1m (its own figures). iwoca suits working capital you can draw down as you need it. Propel suits vendor-introduced asset finance. The table below compares ticket range.
Source: FundBiz methodology.
iwoca, at a glance
- Product
- Flexi-loan / line of credit
- FundBiz editorial view
- Best for working capital you can draw down as you need it
Propel, at a glance
- Product
- Asset finance (hire purchase and lease)
- FundBiz editorial view
- Best for vendor-introduced asset finance
Side-by-side
| Compared on | iwoca | Propel |
|---|---|---|
| Product type | Flexi-loan / line of credit | Asset finance (hire purchase and lease) |
| Ticket range | £1k to £1m (its own figure) | From £500 to facilities over £1m (its own figures) |
| Typical rate | From 1.5% per 30 days | Quoted at offer |
| Decision time | Many customers get an instant decision; larger loans within 24 hours (its own figures) | Not published |
| Lender's own soft search at quote | Yes, says the lender | Not published |
Sources: iwoca's own site · Propel's own site. Figures change; confirm with the lender before you rely on one.
FundBiz enquiries are for limited companies, LLPs and partnerships with four or more partners. Some lenders on this page also accept other business types; we do not arrange those and do not recommend a lender on that basis.
When iwoca may fit
- iwoca says almost all applicants get a decision within 24 hours.
- Flexi-loan structure means the applicant only pays interest on what they draw, useful for cash-flow-gap files.
- iwoca says it only runs soft credit checks when you apply, so applying does not affect your credit score.
- Lends to businesses trading under a year, up to £10,000, per iwoca.
Best for
Working capital you can draw down as you need it, Limited companies and LLPs, including new ones (loans capped at £10,000 in the first year of trading), Borrowers who want a lender soft search and a decision within 24 hours.
Watch outs
- A per-30-day rate looks low but adds up (iwoca's own example shows 3.33% per 30 days as 49% APR representative), so compare the APR before borrowing.
- iwoca says you can borrow up to 20% of turnover, so a larger loan may need a different lender.
- Personal guarantee required.
Lender figures and criteria: iwoca's own site; full notes in our iwoca review.
When Propel may fit
- Can finance technology equipment from £500 upwards through its technology partners, according to its own FAQ.
- Vendor finance integration: many sellers offer Propel at point of sale.
- Publishes its customer satisfaction score (9.7 out of 10 when checked in September 2026) on its own site.
Best for
Vendor-introduced asset finance, IT and soft-asset HP, Commercial vehicles and plant.
Watch outs
- No published pricing; APR depends heavily on profile and vendor channel.
- No published decision time.
- Vendor margin can sit on top of the headline rate.
Lender figures and criteria: Propel's own site; full notes in our Propel review.
FAQ
iwoca or Propel: which is the better UK business finance provider in 2026?
Neither is better for every business. The 'When iwoca may fit' and 'When Propel may fit' sections above say who each one suits, and the side-by-side table shows what each lender publishes. Check each lender's own criteria before you apply.
Which is weakest for what?
iwoca is a poor fit for fixed-term project finance, consider Funding Circle or Allica. Propel is a poor fit for pure unsecured working capital. If either of those describes your business, look at the side-by-side table for the alternative, or read our other lender reviews.
Can FundBiz help with iwoca or Propel?
FundBiz is not a lender and is independent of both. This comparison and our lender reviews are editorial research to help you decide which to approach. If you send an enquiry and ask for funding options, we may pass your details to one of the finance partners we work with, and that can include a lender reviewed on this site.
Who can send an enquiry through FundBiz?
The FundBiz enquiry form is for limited companies, LLPs and partnerships with four or more partners. Eligibility for iwoca and Propel is set by each lender, and trading history requirements vary, so check each lender's own criteria.
How we ranked these lenders
Every lender is scored on the same four FundBiz criteria: pricing transparency, eligibility clarity, decision speed and treatment of declined applicants. Scores are our own desk-research assessment built from the FCA Register, Companies House filings and each lender's published product sheets, not customer reviews and not hands-on product testing. Each comparison shows the date it was last updated. Inclusion is never paid for. We may be paid by the finance partners we introduce you to. This could be a fixed fee or commission, depending on the partner and the finance arranged. It does not change what you pay. See our full methodology.
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Founder & Managing Director, Muswell Rose, FundBiz
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind FundBiz. His background runs through commercial finance, mortgages and fintech, including as managing director of an invoice finance business. He oversees FundBiz's guides and lender reviews.
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