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Iwoca and FundingXchange to offer cash advances to SMEs through Open Banking

Iwoca and FundingXchange to offer cash advances to SMEs through Open Banking

Iwoca has launched an Open Banking-based cash advance product for e-commerce businesses with a business bank account on the FundingXchange marketplace.

Under the arrangement, small business owners operating on platforms such as eBay can access flexible revenue-based repayment loans of between £1,000-£50,000 when trying to source a loan product on FundingXchange’s online marketplace.

With one fixed fee and no interest on the loan, business owners repay what they’ve borrowed based on revenues, setting a loan repayment profile that mirrors their trading ups and downs.

Christoph Rieche, CEO and co-founder at iwoca says: “With our new cash advance product and Funding Xchange partnership, we continue our proud track record of industry firsts. Just under ten years ago we were the first UK company to integrate with eBay and Amazon to provide instant credit decisions for e-commerce sellers. We were also the first business lender to offer a lending API - which has now been 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 £400 million to small businesses through the Government's Coronavirus Business Interruption Loan Scheme (CBILS) and last year launched iwocaPay - an online buy now pay later invoice checkout to help small businesses get paid.

Since launching in 2012, the firm has made funding available to 50,000 businesses and has raised over £500 million in equity and debt finance.

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