Iwoca and Funding Xchange Partner to Launch Cash Advance Product for SMBs

Alternative loans

E-commerce based SMEs can apply for funding from £1,000 to £50,000 from today.

Image source: Christopher Rieche (right)/Iwoca.

Take care of the pennies and the pounds will take care of themselves is a phrase many of us will know. But, now, for UK SMEs, a new team is in town to lend a hand.

Alternative commercial lender Iwoca and SME loan market Funding Exchange have partnered to launch the UK’s first fully automated cash advance product for online SMEs, powered by open banking.

SMEs trading through platforms like eBay or Shopify can now access from Iwoca flexible loans between £1,000 and £50,000 per Fund Xchange marketplace, with automated repayments based on their monthly income.

“With our new cash advance product and Funding Exchange partnership, we continue our proud track record of industry firsts. Just under a decade ago, we were the first UK company to integrate eBay and Amazon to provide instant credit decisions to e-commerce sellers,” Christophe Rièche, CEO and co-founder of Iwoca noted.

“We were also the first commercial lender to offer a lending API, which is now used by over 20 major fintech partners, and the first SME lender to connect to the UK’s nine largest banks with Open Banking. »

E-commerce SMEs will be able to access the loan for a one-time fixed fee and will pay no interest, repaying only what they have borrowed based on their business income.

Businesses will also be able to shape their repayment plan based on their ups and downs, which means they will repay less during seasonal lows or interruptions to their operations.

Iwoca and FundingXchange are leaders in using smart technology to make SME financing more accessible, affordable and sustainable,” Katrin Herring, CEO and co-founder of Funding Exchange added.

“Given the challenges the crisis has created for small businesses, this partnership provides critical access to finance to help businesses rebuild and thrive.”

Although it took longer than some of his peers to become accredited, Iwoca has distributed nearly £400m to SMEs through the Coronavirus Business Interruption Loan Scheme (CBILS) and has applied for the Recovery Loan Scheme but has yet to get the stamp of approval.

A little over a week ago, Funding Exchange integrated its lending market on eBay Capital’s new integrated funding marketplace for eBay Business Sellers (CEBS), helping its sellers access funding in one place.

In just three months since its launch, 2,700 small businesses have borrowed £25.4m through CEBS.

Subscribe to our newsletter

Darcy J. Skinner