Introducing iwocaPay: finance at the point of invoice

We can now provide finance at the point of invoice, for the buyer and seller, to ensure payments can be paid on time – every time.

10 January 2020

We’re really excited to announce iwocaPay, our brand new product. iwocaPay is designed to help small businesses manage their cash flow by giving them extended payment terms while simultaneously helping them pay their suppliers upfront.

Since 2012, iwoca has helped all types of businesses across the country – more than 50,000 of them. But whether they’ve been a marketing consultancy, a training provider or a plumber, 70% of them come to us for help paying a bill or bridging a cash flow gap before getting paid. It’s become clear there’s a hole that needs filling.

Buyers want time to pay for their purchases and sellers want to close the deal – we’re here to help

While there are some products in the UK that seek to solve one side of the problem – such as invoice discounting for sellers and traditional business finance for buyers – there’s nothing that tackles the transaction itself.

We believe that sellers should be paid upfront for the work they’re doing, and buyers should have the time they need to pay without having to chase solutions around the market.

We're launching iwocaPay in early 2020 - join the waitlist for updates now
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iwocaPay – a new way to offer payment terms and get paid upfront

Coming in early 2020, iwocaPay is a new way to offer customers the payment terms they need, when they need them while making sure sellers are paid upfront.

Sellers can offer an easier way to pay, and help customers spread the cost of their purchases

iwocaPay lets sellers include a unique PayLink in an email or an invoice offering their customers the option to spread the cost over 90 days – with one month interest free. It’ll take the customer five minutes to apply and they can get an offer instantly, making it easier for them to manage cash flow around purchases.

Sellers get paid instantly, and customers can enjoy flexible repayment terms

Once the customer accepts the offer, we’ll automatically transfer the seller the payment. From there, we’ll handle the customers’ future repayments and take on any credit risk. Just like our other products, it’s free to repay early, so customers can choose how long they need the finance for – from a day to three months.

Unlike invoice financing, iwocaPay works for both the buyers and sellers

Lots of business owners use invoice financing to secure payment upfront and give them more control over their cash flow, but it’s far from a perfect solution. Fees are often complex and can get expensive, and, in most invoice financing scenarios, the companies using it still take on the risk that their customers won’t pay.

iwocaPay will take all of the risk away from the seller. If their customer doesn’t pay us back, the seller can be comfortable that we won’t come back to them for the money.

As for the buyer – iwocaPay lets them spread the cost of purchases over 90 days. If they repay within the first 30 days, it’s completely free. There’s no hidden fees and no hassle, so they get control over their cash flow, without sellers needing to take on any risk. It’s a win-win situation.

At iwoca, our mission is to help small businesses get easy access to finance. Since 2011, we’ve funded small businesses to the tune of more than £1 billion in the UK and Germany. But we’re not stopping there: we believe access to finance is still a problem for a huge number of small businesses. And in August 2019, we were awarded a £10 million grant from the Capabilities and Innovation Fund to help us do it.

You can check out more about iwocaPay here and signup to be added to our mailing list.

Words by Nick Stokes

Nick is part of the iwocaPay team, working on business development. From a small business background, he loves speaking with business owners and hearing their journeys.

Article updated on: 10 January 2020

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