Colin Goldstein (pictured), commercial growth director at iwoca, says the expansion means SMEs across the UK can now repay their loans in line with the seasonal flow of their businesses
Business lender iwoca has expanded its merchant cash advance product to all small businesses accepting card payments in the UK.
The merchant cash advance product from iwoca, launched in 2012 as an alternative supplier of funding to businesses, enables customers to repay their loans based on sales at a percentage of revenue to suit their own needs.
According to iwoca, the product will be particularly beneficial for those businesses operating in retail, hospitality and ecommerce, with its expansion coming as many potential customers experience significant swings in sales over Christmas and the New Year.
Small businesses affected by supply chain and staffing issues, as well as scale-ups in search of alternative sources of funding to venture capital, also stand to benefit.
Colin Goldstein, commercial growth director at iwoca, explains: “With our merchant cash advance product, SMEs across the country can now repay their loans in line with the seasonal flow of their businesses. As small businesses recover from the pandemic, iwoca will give them the flexibility they need to scale their business.”
The product expansion follows iwoca’s integration with FundingXchange, launched in September, which offers revenue-based finance loans between £1,000 and £50,000 to online sellers on eBay.
Since May 2020, iwoca claims to have successfully lent close to £400 million to small businesses across the UK via the jurisdiction’s Coronavirus Business Interruption Loan Scheme.
Most recently, iwoca was accredited by the British Business Bank as a lender under the Recovery Loan Scheme, which will allow businesses to access loans of up to £10 million to help them recover from the pandemic.