Iwoca has launched a cash advance product that will be available on Funding Xchange’s finance aggregator platform.
The product is designed especially for small business online sellers, giving them flexible, revenue-based repayment loans of between £1,000 and £50,000 to alleviate cash flow issues.
Businesses operating on platforms such as eBay can access these loans when trying to source a loan product on FundingXchange’s online marketplace.
Using open banking technology, Iwoca will calculate the monthly repayments based on the business’ revenues and take a pre-agreed portion of that revenue to repay the loan.
“Our vision is to provide finance to small- and medium-sized enterprises (SMEs) when, where and how they need it,” said Christoph Rieche (pictured), co-founder and chief executive at Iwoca.
“We are transforming small business lending through product innovation powered by technology, combined with creative distribution partnerships.
“With our new cash advance product and Funding Xchange partnership, we continue our proud track record of industry firsts. Just under 10 years ago we were the first UK company to integrate with eBay and Amazon to provide instant credit decisions for e-commerce sellers.
“We were also the first business lender to offer a lending API – which has now been 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 and Funding Xchange are leaders in the use of intelligent technology to make SME funding more accessible, more affordable and more sustainable,” said Katrin Herrling, co-founder and chief executive of Funding Xchange.
“By transforming the credit-assessment and cost-to-serve, we deliver targeted, self-serve propositions to underserved segments.
“Given the challenges that the crisis has created for small businesses, this partnership is delivering critical access to finance to help businesses rebuild and flourish.”