back Back

iwoca launches revenue-based loans to support post-pandemic SME recovery

By Joy Dumasia

December 02, 2021

  • Card Payments
  • Digital Loans
  • Europe
Share

iwoca, one of Europe’s largest small business lenders, has announced the expansion of its merchant cash advance product to all small businesses accepting card payments in the UK. The merchant cash advance will enable small businesses to repay their loan based on their sales and stay in control by choosing what percentage of their revenue to pay.

This product expansion comes following a successful integration with FundingXchange, launched in September, which offered revenue-based finance loans between £1,000 – £50,000 to online sellers on eBay.

The decision to expand comes as most small business owners (87%) using loan products suggest that a revenue-based loan, such as iwoca’s merchant cash advance, would be better or the same as using a term loan. The ability to change payments depending on business performance is a crucial benefit, with over half (55%) of SME owners surveyed by iwoca saying that a finance provider’s flexibility in traditional overdraft facilities presents a challenge.

The merchant cash advance is a flexible loan that enables businesses who experience volatile swings in demand to stay in control of their finances and will be particularly beneficial for those businesses operating in retail, hospitality and e-commerce. The merchant cash advance also offers flexibility to businesses affected by continued economic uncertainty, with supply chain and staffing issues making it difficult to plan. In addition, the revenue-based loan can drive growth for scale-ups whose revenue growth may come months after the finance is secured – an effective alternative to venture capital or private equity funding.

Colin Goldstein, Commercial Growth Director at iwoca, said: “At iwoca, we’re transforming small business lending through brand new innovations powered by Open Banking technology. With our merchant cash advance product, SMEs across the country can now repay their loans in line with the seasonal flow of their businesses. As small businesses recover from the pandemic, iwoca will give them the flexibility they need to scale their business.”

Previous Article

December 02, 2021

Verto streamlines cross border payments with Banking Circle

Read More
Next Article

December 02, 2021

Mastercard, Samhita-CGF, Mswipe and USAID join forces to digitise micro-merchants

Read More









IBSi Daily News Analysis

Middle East, Egypt

January 16, 2024

Card Payments

Egypt among top remittance recipient countries in 2023: World Bank

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

FinBox & Capital Now team to enhance digital onboarding and risk assessment

Read More

January 15, 2024

FincFriends onboards Gaurav Sharma as Chief Compliance Officer

Read More

January 15, 2024

NatWest offers IP-based lending to support high growth businesses

Read More

Related Reports

Sales League Table Report 2023
Know More
Global Digital Banking Vendor & Landscape Report Q4 2023
Know More
Wealth Management & Private Banking Systems Report Q4 2023
Know More
IBSi Spectrum Report: Supply Chain Finance Platforms Q4 2023
Know More
Treasury & Capital Markets Systems Report Q4 2023
Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2023