iwoca expands revenue-based loan to support post-pandemic SME recovery

Thursday 2 December 2021 10:59 CET | News

UK-based SME lender iwoca has announced the expansion of its merchant cash advance product to SMEs accepting card payments in the UK.

The merchant cash advance will enable small businesses to repay their loan based on their sales and have control by choosing what percentage of their revenue to pay. This product expansion comes following an integration with FundingXchange, launched in September 2021, which offered revenue-based finance loans between GBP 1,000 – GBP 50,000 to online sellers on eBay.

The decision to expand comes as most small business owners (87%) using loan products suggest that a revenue-based loan, such as iwoca’s merchant cash advance, would be better or the same as using a term loan, according to the press release. The ability to change payments depending on business performance is a benefit, with over half (55%) of SME owners surveyed by iwoca saying that a finance provider's flexibility in traditional overdraft facilities presents a challenge.

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Keywords: expansion, SME lending, merchants, SMEs, product upgrade
Categories: Payments & Commerce
Countries: United Kingdom
This article is part of category

Payments & Commerce