iwoca launches iwocaPay to help SMEs through the pandemic crisis

As non-essential shops are starting to open, the pressures on small businesses are leading a third of owners to consider reducing or not offering trade credit in the future as they try to minimise their exposure to unpaid invoices, according to the official press release.

The proportion of SME owners that owe large payments to their suppliers has nearly doubled. Iwoca’s small business customers reported that their amounts owed to suppliers has risen since the coronavirus hit.

Thus, iwocaPay gives customers a choice over when they make repayments, allowing them to choose payment terms of up to 90 days. At the same time, suppliers will be paid immediately through iwoca.

iwoca has also released a report in which is stated that businesses face considerable unpaid invoices leading as many as 1 in 4 to doubt they will survive into 2021. The research explores how payment terms were managed before and after the pandemic and sets out a series of recommendations for small businesses.