Iwoca accredited under the Recovery Loan Scheme
Iwoca will provide loans of between £ 25,001 and £ 750,000 to SMEs under the government scheme.
Image source: Christopher Rieche (right) / Iwoca.
With the original loan programs (CBILS, CLIBLS and BBLS) long gone, the government continues to accredit lenders to its new SME support program, the Recovery Loan Scheme.
Today, after months of waiting, alternative commercial lender Iwoca has joined the 70 other lenders accredited with the program.
Other fintech lenders accredited with the government program include Starling Bank, OakNorth Bank, Atom Bank and Funding Circle.
The Recovery Loan Scheme provides SMEs with 80 percent government-guaranteed loans between £ 25,000 and £ 10 million, with interest rates capped at 15 percent.
“We are proud to have been able to support small businesses through the most difficult times. With CBILS alone, we have loaned nearly £ 400million to 1,500 business owners across the country, representing 10% of the approvals market share, ”said Christoph Rieche, CEO and co-founder from Iwoca.
“As the recovery begins to be in full swing, businesses will now need more financing to take full advantage of the opportunities ahead. “
As part of this program, Iwoca will offer loans to SMEs between £ 25,001 and £ 750,000 repayable over five years, with no personal guarantee for loans below £ 250,000.
Just over a month ago, Iwoca also partnered with the SME lending market, Funding Xchange, to launch the UK’s first fully automated cash advance product for online SMEs, powered by by an open bank.
The partnership means that SMEs that trade through platforms like eBay or Shopify can now access Iwoca’s flexible loans in the amount of between £ 1,000 and £ 50,000 through the Funding Xchange Marketplace, with automated repayments based on their monthly income.
Research by Iwoca has found that small businesses applying for credit from Iwoca through its network of integrated financial partners are more likely to be approved than those applying directly to the lender.
In fact, approvals were 58% higher when coming from an integrated financial partner.
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