Your iwoca Flexi-Loan questions answered

Get to know more about accessing an iwoca Flexi-Loan in Xero.

Xero & iwoca

How was I selected for this pilot?

You’ve been selected for the pilot based on a set of eligibility criteria* that iwoca has provided. Being part of this pilot means you have the option to obtain an obligation free quote for an iwoca Flexi-Loan in Xero. Over time we expect that access to business finance via a range of lenders will be a regular feature in Xero.

Is Xero lending money?

No, iwoca is the financial provider. Xero is simply making it easier for you to access working capital through financial service providers like iwoca.

Who are iwoca?

Over the past nine years iwoca has grown from a small start-up to one of the fastest-growing business lenders in Europe. Even though iwoca offers loans, it isn’t a bank. It’s an independent company custom-built for small businesses with a goal to provide straightforward access to finance where and when businesses need it.

Does Xero make money from this arrangement?

Yes, Xero has commercial arrangements with each of its financial services partners. If you're approved for a financial product and subsequently draw down funds, Xero will receive a commission. This does not influence the products displayed to you or the order in which they appear.

iwoca Flexi-Loan

What is an iwoca Flexi-Loan?

iwoca’s Flexi-Loan enables some businesses to access up to £200,000 over a 12 month period. Depending on their circumstances, businesses are typically offered a credit limit that is up to 10% of their annual turnover

Flexi-loan is ideal for filling short term cash flow gaps and with no penalty fees for early repayment it’s designed to help small businesses survive and thrive.

What are the eligibility requirements to apply for 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)

How much could I access?

Businesses are typically offered a credit limit that is up to 10% of their annual turnover. The amount offered is based on your business profile and could vary based on other factors such as your profit margin.

Who should I seek advice from before applying for a Flexi-Loan?

We suggest you speak to your accountant or business advisor about whether a Flexi-Loan is a suitable solution for your business.

How much does Flexi-Loan cost?

Monthly interest rates for Flexi-Loans range between: 2% - 5.7%. Interest rates are determined by your business’s financial circumstances and a rate will be set if your application is approved

This article outlines what the iwoca team considers when deciding what rate to offer.

You only pay interest on what you borrow for the amount of time you borrow it. Interest accrues daily and is charged monthly

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

* Your actual interest rate will be set at application.

Is security or a personal guarantee required?

While iwoca offers unsecured loans, they will require a personal guarantee from at least one company director.

A personal guarantee gives iwoca the right to pursue personal assets if the business can’t repay the loan amount used.

What are the benefits of a Flexi-Loan?

  • Simplified process: Xero’s partnership with iwoca means that applying for a Flexi-loan is simple and a decision on your application is fast.
  • Fast funding: Applying takes minutes, and if approved, funding is typically available within hours of setup.
  • Top ups: Easy and fast top ups for businesses who need more funds. Subject to approval.
  • No penalties for paying off early: You may want to repay early to save on interest. If you want to make extra repayments or pay off your loan early you won’t be charged any extra fees.
  • Great for backup: With no maintenance fees - a Flexi-Loan could be kept open in the background as a safety net for unforeseen costs.

Greater control and confidence: Freeing up cash could give you the control and confidence to cover company expenses and capitalise on new opportunities when they come along.

What types of businesses could be suitable for a Flexi-Loan?

The Flexi-Loan could be suitable for a range of different purposes. For instance, contractors could use it to bridge short-term cash flow gaps and retailers might want to use it to purchase stock.

How can I get an update on my iwoca Flexi-Loan application?

Call iwoca on 020 3397 3375 or email for an update on your application.

How it works - using the service

How does Flexi-Loan work?

Once your application is approved, your account manager will take you through a few final security steps and you will then be able to access your funds.

To access your funds you’ll need to log into your iwoca account and choose how much to borrow. You will then see your repayment schedule. Once you’ve confirmed your bank account details are correct, the funds will arrive in your account in hours.

When can I draw down funds?

Funds can be drawn down up to 14 days after your loan is approved. Once 14 days is up, iwoca may require updated documents to refresh your offer.

When am I eligible for a top up?

Flexi-Loan works as a revolving facility, which means you may be able to top up your loan back to your credit limit. iwoca may ask you to provide up-to-date documents before approving further funding.

How do repayments work?

iwoca typically offers 30 day repayment terms, however you can request a seven day repayment option if that fits best with your cash flow. iwoca's credit team will check to see if weekly repayments are manageable and the best option for your business. Speak to your account manager about what best suits your needs.

Your registered debit card will be automatically charged 30 days after the funds have been issued. However, iwoca also supports early repayments with no penalties.

How can I contact my iwoca account manager?

Your iwoca dedicated account manager is the person to speak to if you have any questions about your Flexi-Loan. You can get in touch with your account manager by phone, email or web chat.

When your loan application is approved, your account manager will contact you with your loan offer and share their contact details.

You can also send a direct message online by pressing the blue chat button at the bottom right corner of your screen when you’re logged into your iwoca account, or give iwoca a call on 020 3778 0274.

How do I reconcile iwoca fees in Xero?

When you set up your Flexi-Loan you will be asked to create a iwoca account in Xero and assign it to the nominal charges/fees account you have in your Xero accounting package. Once this is done you can easily reconcile the monthly charges in Xero.


Do I need to share my data to apply for an iwoca Flexi-Loan?

Yes, you’ll need to provide consent to share your business and related financial information so that iwoca can assess your application. This includes your registered company name, company number, business type, annual turnover, length of trading history, and director information in Xero. Your Xero credentials will not be shared with iwoca.

Data will be shared only once with iwoca.

Should you choose to apply for or draw down on a Flexi-Loan, iwoca has a legal and regulatory obligation to retain the data you’ve already provided for these purposes for a specified period. To find out more about how iwoca uses your data, and for how long they are required to retain it, please see iwoca’s privacy policy.

What will iwoca do with my information?

iwoca will use your Xero data to assist with their underwriting process. As part of the assessment, iwoca will share your information with credit reference agencies to run soft credit and identity checks, which will not affect your credit score. They will also share it with fraud prevention agencies - please be aware, if they do spot fraud, you or others could be refused services, finance or employment.

Is my data safe?

When you give Xero permission to share your Xero data with iwoca, your data is transferred through a secure connection that uses industry standard encryption technology. iwoca will treat this information in accordance with its privacy policy.