How do the main UK flexible credit providers differ?
Flexible credit is one product family with several distinct shapes: a drawable cash credit line, a bill-payment facility repaid in instalments, and a revolving card. The right provider depends on which shape matches how your business actually spends. This guide compares the providers; if you want the mechanics of how revolving credit works, start with our business credit lines guide and come back.
| Provider | Structure | Indicative limits | Pricing style | Suits |
|---|---|---|---|---|
| iwoca | Cash credit line, draw to bank account | Up to £500,000 | Monthly interest on drawn balance | General working capital flexibility |
| Funding Circle FlexiPay | Pay bills and suppliers, repay in instalments | Facility limit set at approval | Flat fee per transaction | Businesses whose spending is supplier invoices |
| Capital on Tap | Business credit card with revolving limit | Card-level limits | Card interest, rewards on spend | Everyday spend and smaller recurring purchases |
All limits and pricing are indicative only and subject to individual lender assessment. Fundably’s flagship revolving credit providers are iwoca and Funding Circle FlexiPay, alongside Capital on Tap and other panel lenders.
What does each provider actually give you?
iwoca offers the classic SME credit line: a pre-approved limit you draw from to your bank account, paying interest only on the drawn balance for the days you hold it. Facilities run up to £500,000 for established SMEs, and eligibility starts from a few months of trading. Because the money lands in your account as cash, it is the most general-purpose of the three: payroll, stock, VAT, opportunities, anything.
Funding Circle FlexiPay approaches flexibility from the spending side. Rather than drawing cash, you use the facility to pay a supplier or bill directly and repay in instalments for a flat transaction fee, so the cost of each use is known in pounds up front. It suits businesses whose cash flow pressure arrives as specific invoices to pay rather than a general shortfall.
Capital on Tap is a business credit card with a revolving limit, which makes it the natural home for distributed, everyday spend: subscriptions, fuel, travel, online purchases across a team. It overlaps with our business credit cards guide, and for many businesses it complements rather than replaces a cash credit line.
Which flexible credit provider suits which business?
Start from where the money goes:
- You need cash in the account to cover payroll, VAT or a general seasonal dip: a drawable line like iwoca’s is the only shape that does this
- Your pressure is specific supplier invoices with known amounts and dates: FlexiPay’s pay-this-bill structure prices that precisely
- Your spend is many small purchases across cards and subscriptions: a revolving card such as Capital on Tap fits, often alongside one of the other two
- You need more than £500,000 or want a facility secured against assets or invoices: look at working capital and invoice finance structures instead
A common pattern for established SMEs is holding two shapes at once: a card for everyday spend and a credit line as the seasonal buffer. Lenders consider your total commitments when approving each facility, but the combination is normal.
What does flexible credit cost?
Credit lines typically price at 0.5% to 3% per month on the drawn balance, which is roughly 6% to 43% APR depending on your profile; flat-fee products convert each transaction into a known charge instead. The undrawn facility usually costs nothing, though some providers charge a facility fee to keep the line open, so check the key terms. Our business finance interest rates guide covers how to convert the different pricing units into comparable pounds. The honest summary: flexibility costs more per pound-month than a term loan, and costs nothing in the months you do not need it, which is the whole trade.
How do you compare flexible credit offers?
Because the three shapes price differently, compare on your own expected usage rather than on headline rates. Sketch your realistic drawing pattern for the next 12 months, cost each offer against it, and check four terms: the rate or fee per use, any facility fee while undrawn, minimum repayments, and the notice period for the lender to reduce or withdraw the limit.
Applying through Fundably runs one application across the 50+ lender panel, including all the providers above, with a soft credit check at the matching stage that does not affect your credit score. As a commercial finance broker and NACFB member, we return the facilities you actually qualify for side by side, so the usage-pattern comparison happens on real offers.
See which flexible credit facilities you qualify for
