SMEs can access up to £500,000
iwoca, one of Europe's largest small business lenders, doubles the maximum size of its core lending product, Flexi-Loan, allowing small business owners to access up to £500,000.
The decision to increase the loan cap follows iwoca seeing current and new customers applying for higher value loans through Covid-19 government loan schemes: the Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan Scheme (RLS).
In addition, the lender's most recent SME Expert Index, a quarterly survey of UK brokers, showed that demand for loans over £200,000 increased compared with last year, rising by eight percentage points between Q2 2021 and Q1 2022.
The increased loan size allows iwoca to cater for the needs of more small businesses, offering them the opportunity to access finance which meets their individual needs, with some looking to invest for the future and others looking to manage their cash flow in the current challenging economic environment.
The Q1 2022 SME Expert Index found that growing their business was the most common loan purpose for small businesses (43%), followed by managing day-to-day cash flow (31%) and bridging occasional cash flow gaps (10%).
UK-based small businesses, including sole traders, partnerships and limited companies, will be able to borrow between £1,000 and £500,000 over a period of one day to two years with iwoca's flexible business loans. With a rapid application process, small businesses will be able to apply for a loan in just five minutes, with money landing in their bank account within 24 hours, in many cases.
iwoca was accredited by the Recovery Loan Scheme, having distributed nearly £400m to small businesses through CBILS. In June 2020 the lender launched iwocaPay – an online buy now, pay later invoice checkout to help small businesses get paid.
iwoca is reaching 1.8 million businesses across the UK and Germany through its embedded lending technology, which offers access to loans through a range of platforms such as accountancy software apps and digital neo-banks. The company has also recently launched free mental health support for all small businesses in the UK, in partnership with online therapy platform Spill.
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