Augmentum Fintech takes iwoca stake – Augmentum Fintech has made an investment of GBP7.5 million in iwoca, which Augmentum describes as a challenger SME lender. The new equity will allow iwoca to fund balance sheet expansion and accelerate growth.
iwoca (www.iwoca.co.uk) aims to provide fast, flexible source of business finance for all UK and continental European businesses (examples it cites are retailers, restaurants, hotels and service providers). iwoca says that businesses use it for all sorts of different purposes, from bridging short-term cashflow gaps to investing in stock opportunities. They consider a wide range of businesses ranging from new startups to established companies. However you must have a UK-based business and operate as a sole-trader, partnership or limited company. Startup business are limited to a maximum credit limit of £10,000.
iwoca gets visibility into the company’s online accounts and bank statements, VAT returns and company accounts. It uses this to get a detailed understanding of the business. If loans are approved, funding can be offered quickly, without the complex paperwork associated with a traditional business loan. The firm has funded more than 25,000 small and medium enterprises across the UK, Germany and Poland.
Tim Levene of Augmentum Fintech, said: “Whilst there are many companies attempting to address SME lending, few have a credit product as advanced as iwoca. We believe their industry-leading analytics and technology set them apart from other lenders and give them a competitive advantage others will find hard to replicate. We are confident that iwoca will emerge as one of the winners in the SME space“.
AUGM : Augmentum Fintech takes iwoca stake