Small business lender iwoca has increased its funding line from Pollen Street Capital to £170m, up from £125m.
Other funding lines are also being increased with existing lenders, it said.
The small business lender experienced a surge in demand last year, with it issuing loans to 15,429 businesses, an increase of 54% from 2021.
It also doubled the maximum size of its Flexi-Loan, last year, rising from £200,000 to £500,000 to meet the demand from medium sized businesses.
Iwoca reaches nearly three million businesses across the UK and Germany through its embedded lending technology. Its platform allows businesses to access loans directly through a range of platforms, including accountancy software apps and digital neobanks.
Another of its core products is iwocaPay, which is an omni-channel B2B payment solution. Last year, it released the Revenue Based Loan service in partnership with eBay, which sees repayments made as a percentage of a business’s monthly sales.
iwoca CEO and co-founder Christoph Rieche said, “Businesses up and down the country are in need of instant working capital to manage the increased pressure on their cash-flow.
“My co-founder and I started iwoca to fill this exact gap and we’re proud that we can step up and support thousands of small businesses every month. Our biggest constraint now is raising the finance fast enough to meet the huge levels of demand we are seeing.”
Speaking on the deal, Pollen Street partner Michael Katramados added, “We are thrilled to extend and expand our partnership with iwoca to help provide much-needed access to capital to small businesses across the UK and Germany.
“This new facility builds on our existing relationship with iwoca which began in 2016 and epitomises our commitment to investments that drive positive impact, in this case the ability to support small businesses through a high-quality lending partner.”
In other lending news, technology-enabled clean energy financing platform Sunstone Credit raised $20m in its oversubscribed Series A funding round.
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