iwoca raises size of its Flexi-Loan to £500,000 to meet growing demand from SMEs
iwoca, one of Europe’s largest small business lenders, has announced that it is more than doubling the maximum size of its core lending product, Flexi-Loan, allowing small business owners to access up to £500,000. The lender is evolving its most popular product, previously capped at £200,000, to meet the growing appetite for high-value loans in the small business sector.
Demand for larger loans grows
The decision to increase the loan cap follows iwoca seeing current and new customers applying for higher value loans through COVID-19 government loan schemes: the Coronavirus Business Interruption Loan Scheme (CBILS) and the Recovery Loan Scheme (RLS).
In addition, the lender’s most recent SME Expert Index, a quarterly survey of UK brokers, showed that demand for loans over £200,000 increased compared with last year, rising by eight percentage points between Q2 2021 and Q1 2022.
The increased loan size allows iwoca to cater to the needs of more small businesses. The Q1 2022 SME Expert Index found growing their business was the most common loan purpose for small businesses (43%), followed by ‘managing day-to-day cash flow’ (31%) and ‘bridging occasional cash flow gaps’ (10%).
Fast access to finance
Small businesses will be able to borrow between £1,000 and £500,000, over a period of one day to two years with iwoca’s flexible business loans.
Christoph Rieche, Co-Founder and CEO of iwoca, said: “All of our customers and partners tell us that they love the fast decisions we offer them; for amounts of £250,000 we make firm offers in less than a day. However, larger small and medium-sized businesses also told us that our maximum loan amounts were too low for them to be relevant and therefore I am delighted that from today we’ll be upping them to £500,000.
“With loans up to £500,000, we now cover an ever larger portion of the SME market. We serve the smallest micro-business that just got started all the way to established medium-sized enterprises – regardless of which industry they operate. I am proud that we’ve already helped more than 70,000 businesses to access finance over the last 10 years, and we won’t stop innovating to serve them better in the future.”