iwoca raises capital via Future Fund scheme to boost SME lending offering

By Megha Bhattacharya

Today, European small business lender, iwoca, announced that it has secured funding via the government’s Future Fund scheme. The funding program aims to offer high growth firms with an opportunity to match third party investments of up to £5 million by subscribing for convertible loans issued by such firms.

Recently, iwoca announced that it would be reaching out to the CEOs of UK banks in a bid to urge for a partnership with the lender for offering SMBs with better access to finance via the CBILS program.

Michael Elalouf, CFO, iwoca, said, “Access to finance is now even more important to ensure both small businesses and the economy recover quickly. We will scale across our product offering to drive this recovery: our CBILS offering will support small companies affected by the crisis, and our Flexi-Loan will help growing businesses manage their cash flow. Additionally, iwocaPay will give small businesses more control over payment terms – an important reassurance at a time when many are experiencing a great degree of uncertainty. We don’t just want businesses to survive this pandemic but grow and build sustainable businesses for many years to come.”

iwoca stated that this development is expected to enable the company to focus on supporting SMBs affected by the pandemic and help them adapt to the new normal. The company is also using its recent CBILS accreditation for assisting the UK SME community and scale-up the provision of finance to small businesses to help get the economy back on track.

David Dick is the Director of B&H Commercials and received a CBILS loan from iwoca. He commented, “This is massive for us. It’s effectively a lifeline to help us get through the coronavirus crisis – we’re delighted. If I contrast the quality of service I’ve had with iwoca to the experience that I’ve had with my high street bank, it’s chalk and cheese.”