Christopher Rieche (right)/Iwoca.
Iwoca more than doubles size of its flexible loans to £500k
After lending to 70,000 SMEs, Iwoca is now after a larger slice of the SME lending market.
Demand for larger loan sizes among SMEs has grown by 8 percentage points over the last 9 months, according to data from Iwoca’s quarterly survey of brokers.
As a result of the increase, Iwoca is increasing the maximum size of its flexible loan product up from £200,000 to £500,000.
The increase is also informed by Iwoca’s experience being part of the government loan schemes for Covid, CBILS and RLS, both of which saw new and existing borrowers coming to Iwoca for higher-value loans.
“All of our customers and partners tell us that they love the fast decisions we offer them; for amounts of £250,000 we make firm offers in less than a day,” said Iwoca’s CEO and co-founder Christoph Rieche.
“However, larger small and medium-sized businesses also told us that our maximum loan amounts were too low for them to be relevant and therefore I am delighted that from today we’ll be upping them to £500,000.”
Rieche said the new higher-value loans mean Iwoca can cover an ever-larger portion of the SME lending market, which should help the lender can support even more businesses.
Over the last decade, Iwoca has lent to more than 70,000 SMEs, including some £400m that it lent via CBILS and RLS, and through its embedded IwocaPay platform it reaches an audience of 1.8m businesses in the UK and Germany.
“We serve the smallest micro-business that just got started all the way to established medium-sized enterprises—regardless in which industry they operate,” added Rieche.
“I am proud that we’ve already helped more than 70,000 businesses to access finance over the last 10 years, and we won’t stop innovating to serve them better in the future."