Iwoca will offer SMEs loans of between £25,001 and £750,000 under the government scheme.
With original loan schemes (CBILS, CLIBLS and BBLS) long gone, the government is still accrediting lenders to its newest support package for SMEs, the Recovery Loan Scheme.
Today, after months of waiting, alternative business lender Iwoca has joined the 70 other lenders accredited to the scheme.
The Recovery Loan Scheme offers SMEs 80 per cent government-backed loans of between £25,000 and £10m, with interest rates capped at 15 per cent.
“We’re proud that we could support small businesses through the toughest of times. With CBILS alone, we lent nearly £400 million to 1,500 business owners across the country representing 10 per cent of the market share of approvals,” Christoph Rieche, CEO and co-founder of Iwoca, said.
“As the recovery starts to get into full swing, businesses will now need more funding to take full advantage of the opportunities ahead.”
Under the scheme, Iwoca will offer SMEs loans from between £25,001 and £750,000 repayable over five years, with no personal guarantee on loans under £250,000.
The partnership means that SMEs trading via platforms like eBay or Shopify can now access Iwoca’s flexible loans of between £1,000-£50,000 through Funding Xchange’s marketplace, with repayments automated based on their monthly revenues.
In fact, approvals were 58 per cent higher when coming through an embedded finance partner—a trend the lender puts down to users applying for finance through its partners having more data on hand to complete their applications to a higher standard.