Fintech Reviews – iwoca

One of the possibilities created by fintech is the decentralisation of finance. This makes things like investment and credit available to more people and businesses than ever before.

iwoca is a great example of a start-up lender. Their name stands for ‘instant working capital’ and they have been operating since 2012. They provide loans of up to £100,000 to small business based on performance. Their innovative risk model analyses data about a company’s current trading status. This might include customer ratings, online sales, and profit margins. They state that there are thousands of data points that they analyse so that clients can secure a loan fast.

Trustpilot bears out the claims made on iwoca’s website regarding reliability and efficiency. They score highly consistently with an overall rating of 9.7. Customers report that the process of acquiring a loan from iwoca is easy and fair.

iwoca – what are the terms?

iwoca lend for a period of up to 12 months but clients can repay early if they wish to without incurring any fees. The typical credit limit they offer is between £1,000 and £100,000 and usually equal to one month’s revenue for the applying business.

The interest rate they offer depends on the business but resides somewhere between 2% and 6%. Repayments can be made either weekly or monthly.

Fintech Reviews – what is iwoca used for?

Businesses use iwoca for bridging capital, start-ups loans, and as a solution to short-term cash flow issues. They have provided support for more than 5,000 business in the UK, Poland, Spain, and Germany. They also offer a trade finance product in partnership with Alibaba to clients purchasing from Chinese suppliers.

Fintech Reviews – what are the implications?

A combination of the way they do business and support from the European Union under the loan guarantee facility means that iwoca are able to offer lower rates to smaller business. Some of these companies would not get through the standardised lending process offered by banks. By taking into account a more rounded picture based on likely success rather than past history alone, iwoca are able to be more flexible. They increase the possibilities for small business and contribute to a more diverse marketplace.