Iwoca launches a cash advance product on the Funding Xchange platform
Iwoca has launched a cash advance product that will be available on Funding Xchange’s financial aggregation platform.
The product is specially designed for small business online sellers, offering them flexible, income-based repayment loans 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 find a loan product on the FundingXchange online marketplace.
Using open banking technology, Iwoca will calculate monthly repayments based on the company’s income and take a pre-determined portion of that income to pay off the loan.
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“Our vision is to provide finance to small and medium-sized enterprises (SMEs) when, where and how they need it,” said Christoph Rieche (photo), co-founder and CEO of Iwoca.
“We are transforming small business lending through product innovation fueled by technology, combined with creative distribution partnerships.
“With our new cash advance product and Funding Xchange partnership, we continue our proud 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 to online sellers.
“We were also the first commercial lender to offer a lending API – which is now used by over 20 major fintech partners, and the first SME lender to connect to the UK’s nine largest banks with an open bank. “
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“Iwoca and Funding Xchange are leaders in using smart technologies to make financing for SMEs more accessible, affordable and sustainable,” said Katrin Herrling, co-founder and CEO of Funding Xchange.
“By transforming credit scoring and cost of service, we are delivering targeted self-service proposals to underserved segments.
“Given the challenges the crisis has created for small businesses, this partnership provides essential access to finance to help businesses rebuild and thrive. “