Head to head
iwoca vs Starling Bank: 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 Starling Bank offers: business banking; loans shown in the Starling app are provided by iwoca. iwoca suits working capital and cash-flow-gap files needing flexible draw-down. Starling Bank suits existing Starling business customers who want to see an iwoca offer inside their banking app. The table below compares decision time and soft search at quote.
Source: FundBiz methodology. Editorial by Best Business Loans Ltd (16833937).
iwoca, at a glance
- Product
- Flexi-loan / line of credit
- FundBiz editorial view
- Best for working capital and cash-flow-gap files needing flexible draw-down
Starling Bank, at a glance
- Product
- Business banking; loans shown in the Starling app are provided by iwoca
- FundBiz editorial view
- Best for existing Starling business customers who want to see an iwoca offer inside their banking app
Side-by-side
Full profiles: iwoca · Starling Bank
| Compared on | iwoca | Starling Bank |
|---|---|---|
| Product type | Flexi-loan / line of credit | Business banking; loans shown in the Starling app are provided by iwoca |
| Ticket range | £1k to £1m (its own figure) | Set by iwoca (Starling doesn't offer its own business loans) |
| Typical rate | From 1.5% per 30 days | Set by iwoca |
| Decision time | Decision within 24 hours in almost all cases (its own figure) | Decision typically within 24 hours, instant possible up to £100k (iwoca's figure, shown by Starling) |
| Lender's own soft search at quote | Yes, says the lender | Yes, by iwoca |
Sources: iwoca's own site · Starling Bank'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 and cash-flow-gap files needing flexible draw-down, Newer Ltd companies trading 12 to 24 months, 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 Starling Bank may fit
- Loan offers can appear inside the existing Starling business app for eligible customers.
- PRA and FCA authorised; FSCS-protected deposits.
- iwoca, the lender behind the in-app loans, says it only runs soft credit checks when you apply.
Best for
Existing Starling business customers who want to see an iwoca offer inside their banking app.
Watch outs
- Starling doesn't lend its own business loans, so there's no Starling rate or criteria to compare.
- The in-app route is for Starling business customers only; others can apply to iwoca directly.
Lender figures and criteria: Starling Bank's own site; full notes in our Starling Bank review.
FAQ
iwoca or Starling Bank: which is the better UK business finance provider in 2026?
Neither is better for every business. The 'When iwoca may fit' and 'When Starling Bank 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. Starling Bank is a poor fit for borrowers banking elsewhere. 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 Starling Bank?
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. FundBiz doesn't pass your enquiry to either lender. If you send an enquiry through FundBiz, we pass it to one of the finance partners we work with, who will contact you about your options.
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 Starling Bank 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, and FundBiz receives no commission from lenders. FundBiz is paid a fixed fee by one of the finance partners we work with for each enquiry we pass on. See our full methodology.
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