iwoca and Funding Xchange Partner to Offer Cash Advance Product for SMEs

SMEs lending marketplaces iwoca and Funding Xchange have formed a partnership to deliver the first fully automated cash advance product through open banking to online SMEs in the UK. This partnership is delivering critical access to finance to help businesses rebuild and flourish.

Reportedly, iwoca’s flexible loans of between £1,000-£50,000 are available to SMEs trading via platforms like eBay or Shopify through Funding Xchange’s marketplace, with repayments automated based on their monthly revenues.

Online SMEs can access the loan for a one-time fixed fee and pay with no interest, and only repay what they’ve borrowed based on their trading revenue. Also, they will be able to formulate their repayment plan according to their needs, which means that firms will repay less during seasonal dips or interruptions in their operations.

“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 eCommerce sellers,” Christoph Rieche, CEO and co-founder of iwoca said.

Furthermore, iwoca was 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.