iwoca, a major SME lender in Europe, has secured a new funding line worth £200 million from Barclays and Värde Partners. This is in addition to their existing funding line, which was increased and extended to £170m with Pollen Street Capital earlier this year due to high demand for SME finance. The new funding line brings their total debt commitments to over £850m.
As traditional banks are reducing their appetite for funding SMEs while demand for financing grows, the funding gap for SMEs is likely to widen without support from alternative lenders. iwoca’s new funding line, however, equips them to meet the growing SME demand for working capital.
Since its launch in 2012, iwoca has lent out over £2.5 billion across more than 120,000 business loans to sectors ranging from construction to retail and manufacturing and food production. They are on track to end 2023 having doubled the number of small business loans they had funded in 2021.
iwoca has made their lending technology embeddable on a range of platforms like accountancy software apps and digital neo-banks, reaching nearly three million businesses across the UK and Germany. They offer a range of financing solutions that cater to different business needs—including their flagship product, Flexi-Loan, and iwocaPay, an omni-channel B2B payment solution.
Aneek Mamik, global head of financial services & diversified private credit at Värde Partners, said that they are pleased to support iwoca’s expansion of commercial financing opportunities, given their differentiated sourcing and underwriting capabilities that provide access to a high-quality portfolio of commercial businesses.
Christoph Rieche, CEO and co-founder of iwoca, said: “These SME businesses form the basis of a strong economy, and iwoca will lead from the front to help them thrive and achieve their goals.”
Overall, the new funding line enables iwoca to support UK and German small businesses in times of economic uncertainty. Rather than widening the funding gap, iwoca offers much-needed support to SMEs in the face of reduced access to traditional financing.