Business lender iwoca has teamed up with credit information provider CRIF to help SMEs in the UK get instant decisions on lending applications.
The partnership sees CRIF’s Credit Passport, which gives SMEs an open banking-powered credit profile, integrated into iwoca’s lending platform. This will empower instant decisions on business loans up to £25,000 and decisions within 24 hours for loans up to £500,000.
iwoca stated the Credit Passport will allow SMEs to complete applications within one minute as the application will be pre-populated with all information from their credit profile.
The companies claim that by integrating their services, they can streamline the onboarding process and reduce the burden on businesses for lengthy loan applications.
Speaking on the deal, iwoca partner channel manager Harry Cranfield said, “When it comes to finance, businesses should feel empowered, not hindered. For too long, the UK’s smallest businesses have struggled to access the finance that larger businesses take for granted. The current lending market poses big challenges to SMEs trying to find capital during an economic downturn. As banks retrench – and narrow their financing options for small businesses – it’s become all the more important that alternative lenders can step in.
“Our partnership with CRIF will help us make instant finance a reality for thousands of SMEs, offering them a quicker, more transparent and reliable way to apply for and secure lending. Only by supporting SME growth can we truly hope to see economic recovery in the UK.”
According to an SME Expert Index data report from iwoca, more than eight in ten SME finance brokers agree that major banks have reduced their appetite to fund SMEs.
By leveraging open banking-powered credit scoring, a more accurate picture of a business’s creditworthiness can be established.
iwoca recently increased its funding line from Pollen Street Capital to £170m, up from £125m.
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