Flexible business finance: helping small businesses with short term cash flow

We’ve partnered with iwoca to offer eligible small businesses the option to apply for a Flexi-loan from within Xero.*

Two people looking at a laptop, talking to each other with copy along the bottom saying In partnership with iWOCA'

What does iwoca do?

Similarly to Xero, iwoca is on a mission to improve the lives of small businesses. Iwoca is not a bank, but an independent company custom-built for all small businesses to provide straightforward access to financing where and when they need it.

Flexi-Loan could help businesses who might:

  • Require a short term cash flow solution
  • Need working capital quickly
  • Need to purchase stock

What is a Flexi-Loan?

Iwoca’s Flexi-Loan is a 12 month line of credit that isn’t secured against any of your assets. Access up to £200,000 quickly and easily, with no penalty fees for early repayment.

What are the benefits of iwoca’s Flexi-Loan?

Easy application

An application from within Xero can be submitted within minutes.

Quick decision

iwoca can make a decision on applications within 1 working day, if not instantly.

Fast funding

If approved, and once set up, funds are typically available within hours.

Fee free

No drawdown, maintenance or exit fees. Plus, there are no penalty fees for paying off your balance early. Only pay interest on the outstanding balance.

Top ups available

Easy and fast top ups for businesses who need more funds. Subject to iwoca approval.

Great for backup

With no maintenance fees - Flexi-Loan could be kept open in the background as a safety net for unforeseen costs.

How are costs calculated?

Only pay interest on the amount used, for the time it’s used for. Interest is calculated daily and charged monthly. Plus, if things are going well and the loan can be repaid early, there are no penalties.

For example, if you borrowed £10,000 at an interest rate of 3.33% per month and only needed the funds for 3 months, the total amount you'd repay is £10,673**

** The interest rate quoted is an example. Your actual interest rate will be set at application.

The interest rate is determined by iwoca and is based on a risk and credit assessment. Businesses will need to complete an application in order to see the interest rate and credit limit iwoca could offer them. iwoca eligibility criteria applies.*

How to apply

iwoca is only available to eligible small businesses selected for this pilot.*

Update Xero

Make sure the books are up to date - reconcile transactions and record income received.

Get indicative quote

Based on Xero data, Xero calculates an indicative quote for your client to review.

Connect Xero with iwoca

iwoca uses the data from Xero to enable a more streamlined application process.

Start the application with iwoca

Businesses may need to upload relevant documents and provide further details over the phone in order for iwoca to complete a credit assessment.

Get interest rate and offer

If approved, funds could be accessible within hours after setup.

Easy reconciliation

A direct feed into Xero makes reconciliation quick and easy, meaning up to date accurate records.

No data is shared with iwoca without permission.


How are businesses selected for this pilot?

Selected businesses are identified for this pilot based on a set of eligibility criteria* that iwoca has provided us.

Being part of this pilot means selected businesses have the option to obtain an obligation-free quote for an iwoca Flexi-Loan through Xero. Over time we expect that access to business finance via a range of lenders will be a regular feature in Xero.

Is security required?

No. iwoca offers unsecured loans with no asset requirements, but will require a personal guarantee from at least one of the company directors.

How much can businesses access?

In most cases, businesses are generally offered a credit limit that is up to 10% of their annual turnover. The amount offered is based on the business profile and could vary based on other factors such as profit margin.

What will iwoca do with a business’ Xero data?

Only when a business has consented to sharing their Xero data, iwoca will review business details and related financial information to assess their application.

This information includes bank transactions, payments, profit and loss statements and balance sheets. iwoca will treat this information in accordance with their privacy notice.

After a business is approved for funding, iwoca will share records of the iwoca Flexi-Loan with Xero, to keep the Xero organisation up to date. Once it’s shared back to Xero, this data will be subject to Xero’s terms of use (just like all other Xero data).

How would a business be eligible to apply for iwoca’s Flexi-Loan through Xero?

*To be eligible to apply for an iwoca Flexi-Loan you’ll need to meet the following requirements:

  • You have been trading for 12 months or more
  • Your annual turnover is £50,000 or more
  • Your business is incorporated (e.g. a limited company or limited liability partnership)

You might also be interested in

Xero’s App Store features various applications that offer a range of financial services including business loans and finance to help your clients run their business.

Find out why Xero is an important asset when applying for business loans and finance.

5 rules for managing small business cash flow

Get the tools you need to nurture healthy cash flow for your clients and learn about the right apps to use and how to promote your advisory services.

* An iwoca Flexi-Loan could help businesses quickly access up to £200,000, to help manage short term cash flow or put towards growth opportunities. In most cases, businesses are generally offered a credit limit that is up to 10% of their annual turnover.

*To be eligible to apply for an iwoca Flexi-Loan through Xero businesses need to have been trading for a minimum of 12 months and have an annual turnover of at least £50,000. Businesses need to be Limited Company or Limited Liability Partnership registered with Companies House in England & Wales. No data is shared with iwoca without permission.