We’re incredibly happy to announce that we have just signed a deal with the European Investment Fund (an EU agency) which will allow us to provide £40m in funding to 3,000 small businesses across the UK.
Most importantly the guarantee scheme will help us to lend to more businesses at lower rates. It’s part of broader EU efforts to increase lending to small businesses and shows that they recognise the crucial role of tech-enabled lenders such as iwoca. Technology allows us to efficiently and fairly lend to SMEs without all the upfront costs that would be incurred by a bank.
Increasing access to finance for small businesses has always been part of our mission. Our CFO Michael Elalouf made it clear why this is so important when commenting on the news:
“This agreement between iwoca and the EIF is a boon for the millions of SMEs who critically need access to finance. These businesses are the lifeblood of our economy and have been underserved by traditional finance providers. We believe this partnership represents a genuine endorsement of iwoca’s strategy and innovative technology platform. We look forward to expanding our relationship in the future to further meet the needs of SMEs across Europe.”
So how does the news change things for an iwoca customer? In essence everything important stays the same – we’ll keep our unrivalled service, speed and flexibility (implementing EU-style bureaucracy is not part of the deal!). However, it will allow us to offer lower rates to eligible customers – your account manager will be in touch if this applies to you – and broaden our lending criteria over time.
Find out more in the full press release.