iwoca expands revenue based loan to support SME recovery

The merchant cash advance will enable small businesses to repay their loan based on their sales and stay in control by choosing what percent of their revenue to pay. 

This product expansion comes following a successful integration with FundingXchange, launched in September, which offered revenue-based finance loans between £1,000 - £50,000 to online sellers on eBay.

The decision to expand comes as the majority of 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. The ability to change payments depending on business performance is a key 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.

Colin Goldstein, Commercial Growth Director at iwoca, said:

“At iwoca, we’re transforming small business lending through brand new innovations powered by Open Banking technology. 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.”