FinTech: U.K.’s iwoca Aims To Lend Over £200M To Small Businesses

November 12, 2020 | FinTech, News

The Coronavirus Business Interruption Loan Scheme (CBILS) has been extended until the 31st of January 2021.

Lender to small businesses, iwoca, has determined to lend another £ 100 million to U.K.’s small businesses under the CBILS scheme, it announced today. With £ 100 million already lent, that would bring iwoca’s loan total to over £ 200 million by January 31, 2021.

Iwoca is one of Europe’s largest small-business lenders. Its message today is especially relevant, and welcome, to small businesses. The country has entered into stricter lockdown measures following a resurgence in virus infections. (THE FINTECH TIMES)

The fintech is an accredited CBILS lender.

The UK faces a new lockdown

In a bid to ensure that small businesses are not starved of finances given the possibility of further economic hardships, iwoca has raised the ceiling on loan value under CBILS from £ 500,000 to £ 750,000.

In July, the fintech raised debt financing to support new CBILS customers and started accepting applications from new customers.

It also urged banks to relieve some of the pressures they were facing due to the large volume of loan applications by sharing some of the load.

“We are calling on the U.K.’s largest banks to refer businesses they cannot serve to the FinTech community,” it said at the time.

Since then, iwoca has stepped up its loan offerings to new customers and they amounted to 83% over the past month.

iwoca accounted for 1.6% of total CBILS approvals in August. By October that proportion rose to 5.6%.

Support from iwoca

“Small business owners have had an incredibly tough year, “ said Michael Elalouf, iwoca’s CFO in a blog post.

“With the recent CBILS extension, our focus is now on reaching as many business owners as possible who think they could benefit from Government-backed finance. iwoca stands ready to help those customers who are struggling to get the support they need from the high street banks during this time.”

Last week, the company tweeted:

“We’re making iwocaPay free to use till December 2nd to support small businesses during lockdown. You get paid 100% of your invoice upfront. Your customer spreads their costs over 90 days for free.”

Related Story:    iwoca’s New OpenLending Platform To Support SMEs During Coronavirus                                 

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