Iwoca has launched an Open Banking-based cash advance product for e-commerce businesses with professional bank accounts in the FundingXchange marketplace.
Under the deal, owners of small businesses operating on platforms such as eBay can access flexible income-based repayment loans ranging from Â£ 1,000 to Â£ 50,000 when trying to find a loan product on FundingXchange’s online marketplace.
With a fixed fee and no interest on the loan, business owners pay back what they borrow based on income, setting a loan repayment profile that reflects their ups and downs.
Christoph Rieche, CEO and Co-Founder of iwoca, said: âWith our new cash advance product and Funding Xchange partnership, we continue our proud track record of industry firsts. Just under a decade 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 Open Banking.
Iwoca distributed nearly Â£ 400million to small businesses through the government’s Government Business Interruption Loan (CBILS) program and last year launched iwocaPay – an online purchase that now pays for the payment of bills later to help small businesses get paid.
Since its launch in 2012, the company has made funds available to 50,000 businesses and has raised over Â£ 500million in equity and debt financing.