Iwoca and Funding Xchange partner to launch cash advance product for SMEs


Alternative loans

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

Image source: Christopher Rieche (right) / Iwoca.

Caring for the pennies and the pounds will heal is a phrase that many of us are familiar with. But now for UK SMEs a new team is in town to give them a hand.

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

SMEs that trade through platforms like eBay or Shopify can now access Iwoca’s flexible loans in the range of £ 1,000 to £ 50,000 through the Funding Xchange Marketplace, with automated repayments based on their monthly income.

“With our new cash advance product and Funding Xchange partnership, we continue our proud record of industry firsts. Just under ten years ago, we were the first UK company to integrate eBay and Amazon to provide instant credit decisions to e-commerce sellers, ”said Christoph Rieche, CEO and co-founder of Iwoca.

“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 pay no interest, only repaying what they have borrowed based on their business income.

Businesses will also be able to tailor their repayment plan to their ups and downs, which means they’ll repay less during seasonal lows or downtime.

“Iwoca and FundingXchange are leaders in using smart technologies to make financing for SMEs more accessible, more affordable and more sustainable,” added Katrin Herrling, CEO and co-founder of Funding Xchange.

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

Although it took longer than some of its peers to gain accreditation, Iwoca has distributed nearly £ 400million to SMEs through the Coronavirus Business Interruption Loan Program (CBILS) and has applied for the payback loan program but has not yet obtained the seal of approval.

Just over a week ago, Funding Xchange integrated its lending marketplace into eBay Capital’s new Integrated Funding Marketplace for eBay Business Sellers (CEBS), helping its sellers access finance in one place.

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

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