Small business loan provider iwoca has released a new OpenLending solution which hopes to help companies brace the troubles of COVID-19 (coronavirus).
The new service allows its partners, which includes digital banks, accounting software platforms and payment service providers, to offer fully customised loans to customers within their own platform. The service has already seen 14 of its partners sign up including Funding Options, Monese and Funding Xchange.
This tool will enable the partners to offer more personalised experiences.
iwoca CEO and co-founder Christoph Rieche said, “The concept of OpenLending has the potential – through collaboration with the banks and fintech partners – to fix some of the biggest problems SMEs will face in the coming months.
“OpenLending is a fully digital platform that established banks can use to get finance to small businesses within minutes, opposed to weeks or even months. Digital access to finance is particularly valuable now where COVID-19 may lead to severe disruption of bank branch networks and call centres, reducing their ability to provide the service level that they aim for under normal circumstances. Now is the time to come together and work collaboratively to solve this problem”
iwoca is a lending platform which enables businesses to access working capital loans from £1,000 to £200,000. These “flexi-loans” can be taken out to buy stock, pay bills or make short-term investments and are on repayment terms ranging from one day to 1 year.
The company has lent more than £1bn to more than 50,000 small businesses, it claims.
It also revealed it is looking to create a customised finance solution with digital accounting platform Xero, which could be released in early 2021. The solution would be designed specifically for Xero customers and provide them with more tailored finance products.
Earlier this year, global asset manager Insight Investment reportedly supplied iwoca with €100m in debt capital to help the FinTech finance more loans.
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