Capitalise vs iwoca, Funding Circle and Swoop

Capitalise, iwoca, Funding Circle and Swoop all help UK businesses access finance, but they work in different ways. Capitalise and Swoop are funding platforms that connect you with multiple finance providers. iwoca is a direct lender with its own business loan, and Funding Circle lends directly too, through a wider range of its own products plus asset finance from specialist partners. Each platform also differs in what you get beyond the funding itself, from free credit scores to checking the businesses you work with. This guide compares Capitalise, iwoca, Funding Circle and Swoop, including how each one works, the finance available, typical amounts and speeds, costs, and the business credit tools each platform offers.

How are Capitalise, iwoca, Funding Circle and Swoop different?

Capitalise and Swoop are funding platforms that match you with multiple lenders. iwoca and Funding Circle are direct lenders that fund you themselves, using their own money rather than a panel. Capitalise is a business finance platform rather than a lender. You complete one application and can be matched with funding from a panel of 130+ UK lenders, rather than approaching each one separately. A funding specialist can support you through the process.

Swoop works in a similar way. It is a credit broker rather than a lender, and introduces businesses to a panel of lenders, equity funds and grant agencies. That means you can explore loans, equity and grants through one platform, not just borrowing.

iwoca lends directly. Its main product is the Flexi Loan, so when you apply to iwoca, you are applying to iwoca itself rather than being matched with a wider panel. Loans range from £1,000 to £1,000,000, with decisions typically available within 24 hours.

Funding Circle also lends directly, through a wider range of its own products: business loans, FlexiPay, a business credit card and Growth Guarantee Scheme loans. Its asset finance is arranged through specialist partners and can fund vehicles, machinery and other equipment.

How do Capitalise, iwoca, Funding Circle and Swoop compare?

Capitalise

Capitalise combines access to business finance with tools that help you understand and manage business credit. You complete one application and can be matched with funding from a panel of 130+ UK lenders, including iwoca, rather than approaching each lender separately. A funding specialist supports you through the process, and the finance available depends on your business, how much you need and what you are looking for.

Beyond funding, Capitalise gives you:

• Access to your full Experian powered business credit score

• The ability to credit check the customers, partners and suppliers you work with

• A professional Credit Review Service with Experian, to have your credit profile professionally reviewed

We compare all three in more detail below.

This makes Capitalise a good fit if you want to compare funding from multiple lenders while also keeping an eye on your own credit position and the businesses you trade with.

iwoca

iwoca is a direct lender offering a single product, the Flexi Loan.

• Loans from £1,000 to £1,000,000, over terms of up to five years

• Interest charged only on the balance you draw down, from around 1.5% per 30 days as an example rate

• No fee for repaying early, though borrowing for longer than 12 months carries an additional fee

• Application takes a few minutes, with decisions typically made within 24 hours

• A free business credit score of your own, called Credit Compass, built on Equifax data rather than Experian (we compare this below)

A director's personal guarantee is required. iwoca suits a business that already knows it wants a flexible loan and is happy dealing with one lender directly. You can also apply to iwoca through Capitalise, alongside its other 130+ lenders, if you would rather compare it against other options as well.

Funding Circle

Funding Circle lends directly, with a wider range of its own products than iwoca.

• Business loans from £10,000 to £750,000, with rates from 6.9% a year as an example rate

• Growth Guarantee Scheme loans from £25,001 to £250,000, with rates from 13.4% a year as an example rate

• FlexiPay and a business credit card for day to day spending

• Asset finance up to £5 million for vehicles, equipment and machinery, arranged through specialist partners

• Decisions in as little as an hour for some products

The actual cost depends on the product and your circumstances. Funding Circle does not offer its own business credit score or a way to check other companies. It can suit a business that wants a wider menu of credit products from one direct lender, rather than a marketplace matching you across many.

Swoop

Swoop is a credit broker, not a lender.

• Introduces you to a panel of lenders, equity funds and grant agencies, so you can explore loans, equity and grants in one place

• Also covers services like insurance, banking and foreign exchange

• Free to use, since it is typically paid a commission by the provider once funding is placed, which Swoop says never changes what you pay

• A free business credit score of your own, through Creditsafe, a different credit reference agency to the Experian data Capitalise uses (we compare this below)

Swoop can suit a business exploring more than borrowing, such as grants or equity investment, alongside loans.

How do the business credit tools compare?

A business credit score can help you understand how your business appears to lenders and suppliers, but managing business credit involves more than checking a single number.

Which platforms give you a free business credit score?

Capitalise, iwoca and Swoop all give you a free business credit score of your own. Funding Circle does not offer a scoring tool at all.

• Capitalise's business credit scores are Experian powered. You can see your business credit position before or alongside looking for finance, so you know how your business is likely to appear when a lender or supplier assesses it. Checking your own score does not affect it. On paid plans, you also get more detail about the factors behind your score and your payment performance, and Capitalise uses the same Experian profile when assessing you against its panel of lenders.

• iwoca's free score, Credit Compass, uses Equifax data instead. It covers your Equifax business credit score, credit history, financial status and Companies House assessment, with monthly updates and guidance on what may be affecting the score.

• Swoop's free score comes through Creditsafe, a third credit reference agency.

Since Experian, Equifax and Creditsafe hold different information and can score a business differently, checking through more than one can give you a fuller picture.

Which platform lets you credit check other companies?

Capitalise is the only one of the four that lets you credit check other companies. Your own credit profile only tells you how other businesses may assess you. It does not tell you whether the customers or suppliers you rely on are likely to pay you on time. That matters if your business offers payment terms. When you let a customer pay 30, 60 or 90 days after an invoice, you are taking on the risk that the payment arrives late or not at all, and across several customers, that gap between money going out and money coming in can put pressure on your own cash flow. Capitalise lets you check a company before you decide whether to work with them, how much credit to extend, or whether a change in a customer's financial position is worth a closer look.

Which platform offers a professional credit review?

Capitalise is the only one of the four with a professional credit review service. Our Credit Review Service enables you to provide additional information to Experian, and they may update your credit profile where the evidence supports a change. A credit review costs £495 as a one off service, or £375 for customers on a paid subscription. In 96% of applications result in a positive change, typically within five to ten working days. None of iwoca, Funding Circle or Swoop offer an equivalent service.

Which platform might suit your business?

The right platform depends on what you need from the funding process and how much support you want around business credit.

• If you want to compare multiple lenders: Capitalise and Swoop both connect you with several finance providers through one platform.

• If you already know you want a direct business loan: iwoca offers its own Flexi Loan from £1,000 to £1,000,000, so you apply directly to the lender rather than a wider panel.

• If you want several types of finance from one provider: Funding Circle offers business loans alongside FlexiPay, a business credit card, Growth Guarantee Scheme loans and asset finance through specialist partners.

• If you want to explore grants or equity as well as borrowing: Swoop connects you with lenders, equity funds and grant agencies, so you can weigh up different forms of finance through the same platform.

• If you want to understand your own business credit position: Capitalise gives you a free Experian powered score, iwoca offers one through Credit Compass using Equifax data, and Swoop gives you access to Creditsafe. Each uses different data, so results can vary between them.

• If you want to check the businesses you trade with: Capitalise is the only one of the four that lets you credit check customers, suppliers and other companies, so you can weigh up the risk before extending payment terms or taking on new business.

• If you want your credit profile professionally reviewed: Capitalise's Credit Review Service, enables your credit profile to be reviewed by Experian and potentially improved.

Compare your finance optioms with Capitalise

If you are comparing Capitalise with iwoca, Funding Circle or Swoop, you do not have to choose between looking for finance and understanding your business credit position. Capitalise lets you apply once and compare funding from a panel of 130+ UK lenders, while giving you access to your Experian powered credit score, the ability to credit check the companies you work with, and a professional credit review when you need one. Sign up today to get started.