iwoca, one of the largest SME lenders in Europe, has finalised a £250m funding structure alongside a leading UK bank and Waterfall Asset Management (WAM Capital), aimed at expanding access to flexible finance for British small businesses.
The arrangement enlarges iwoca’s capacity to lend, allowing it to reach a greater number of firms across the country, from those expanding their operations to companies purchasing new equipment or pursuing growth opportunities.
The deal arrives on the back of a strong stretch of expansion for the lender. Since launching in 2012, the total number of UK SMEs it has financed has climbed from 60,000 in 2024 to 96,000 today. Last year alone, the firm provided 58,000 loans totalling more than £1.3bn, a 60% jump in lending value compared with 2024.
Over the last two years, iwoca has carried out multiple debt raises to keep pace with appetite for finance, drawing backing from the likes of Lloyds, Citi, Barclays, Värde Partners, Pollen Street Capital and Insight Investment.
Research from the company’s most recent SME Expert Index suggests demand for finance and for larger loans will keep climbing. Mid-sized loans of £50,000 to £100,000 made up 42% of all SME loan applications in Q1 2026, up sharply from 27% a year earlier. Some 57% of brokers anticipate demand will grow further over the coming six months.
iwoca head of capital markets Romain Guilleminet said, “We’re proud to have now grown to a size where we make a material impact on thousands of SMEs and their communities every month. This facility means we can offer more businesses the kind of support they’re looking for, backed by some of the best institutional partners in the market. We’re delighted to be working with another leading UK bank and Waterfall – their confidence in our approach means a great deal, and together we can make a real difference to UK businesses.”
Waterfall Asset Management partner, head of Europe James Cuby said, “We are excited to extend our funding relationship with iwoca through this new facility, unlocking further lending capacity for UK SMEs that are chronically underserved by traditional lenders. iwoca has been able to deliver growth consistently year after year, whilst maintaining strong credit performance and expanding its product offering for its client base.”
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