Iwoca and FundingXchange offer cash advances to SMEs via Open Banking
Iwoca has launched a cash advance product based on Open Banking for e-commerce businesses with a business bank account on the FundingXchange marketplace.
Under the deal, small business owners operating on platforms such as eBay can access flexible income-based repayment loans ranging from £1,000 to £50,000 when trying to source a product loans on the FundingXchange online marketplace.
With fixed fees and no interest on the loan, business owners repay what they borrow based on income, establishing a loan repayment profile that reflects their business ups and downs.
Christoph Rieche, CEO and co-founder of iwoca, says, “With our new cash advance product and our Funding Xchange partnership, we are continuing 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. 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.
Iwoca has distributed nearly £400million to small businesses through the government’s Coronavirus Business Interruption Loan (CBILS) scheme and last year launched iwocaPay – an online buy now pay later the invoice fund to help small businesses get paid.
Since its launch in 2012, the company has made funds available to 50,000 businesses and raised over £500m in equity and debt funding.