iwoca and Funding Xchange Launch Automated Merchant Cash Advance



iwoca and Funding Xchange Launch Automated Merchant Cash Advance

By Joy Dumasia

iwoca, one of Europe’s largest small business lenders, has launched its first cash advance product on Funding Xchange for small business online sellers. iwoca will be the first lender in the UK to use Open Banking to offer fully automated revenue-based refunds to e-commerce businesses with a business bank account in the market.

Small business owners operating on platforms such as eBay can access flexible income-based repayment loans ranging from £1,000 to £50,0001 when trying to find a loan product in the online marketplace from FundingXchange.

iwoca will calculate monthly repayments based on business income and take a pre-agreed portion of that income to repay the loan. Building on iwoca’s heritage of bringing flexibility to SME loans, the new Cash Advance product will, for the first time, allow SMEs to choose a loan repayment profile that reflects their ups and downs. commercial stockings, allowing maximum flexibility during operational interruptions or seasonal lows. As Open Banking is funding the loan, it will have mass market potential.

Christoph Rieche, CEO and co-founder of iwoca, said: “Our vision is to provide finance to SMEs when, where and how they need it. We transform small business lending through technology-fueled product innovation combined with creative distribution partnerships. With 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 eBay and Amazon to provide instant credit decisions to e-commerce 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.

Recently, IBS Intelligence reported that new data from iwoca, one of Europe’s largest small business lenders, reveals how integrated financing will play a vital role for small businesses as they seek to recover from the pandemic.

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