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iwoca aims to lend over £200 million to small businesses before CBILS applications close in January

By iwoca

  • The lender recently surpassed £100 million in CBILS lending, and aims to lend at least a further £100 million before the scheme closes

  • Over the past month 83% of iwoca’s approvals through the scheme were given to new customers

  • iwoca is increasing its maximum loan value available to businesses through CBILS to £750,000

  • iwocaPay, the lender’s “buy now, pay later” invoice product will also be free for small businesses during UK lockdown

London, 12th November, 2020. iwoca, one of Europe’s largest small business lenders, has laid out its ambitions to lend an additional £100 million to businesses through the Coronavirus Business Interruption Loan Scheme (CBILS) before applications close on 31st January 2021. This will bring its total lending to over £200 million.

This comes as analysis of Treasury figures shows that iwoca approved one in every 18 of all loans via the scheme in the last month,1 helping hundreds of small businesses affected by the pandemic. Since launching its CBILS offering in May, iwoca has steadily increased its share of total approvals in the scheme, rising from 1.6% in August to 5.6% in October.

The fintech lender recently surpassed £100 million worth of lending through CBILS to businesses grappling with the fallout of the economic crisis caused by the virus. With less than three months to go, iwoca hopes to double this to help more small businesses weather the crisis.

iwoca focuses on helping new customers on to the scheme 

As applications now close in January, iwoca is redoubling its efforts on helping new customers to access finance in the remaining period. The lender opened up CBILS applications to new businesses in July,2 and over the past month 83% of iwoca’s approvals through the scheme were given to new customers.

iwoca is also increasing the maximum loan value available to businesses through CBILS from £500,000 to £750,000. With much of the UK having entered into stricter lockdown measures, this will ensure that firms can access the finance they need in the face of growing economic pressures.

iwocaPay drops all fees during UK lockdown

In a move to further help small businesses navigate the pandemic, iwoca’s invoice payments product – iwocaPay – will be free to use throughout the UK’s second national lockdown. The payments product that allows sellers to get paid upfront while letting customers spread their costs over 90 days will have all of its fees dropped until the UK emerges from a second national lockdown on 2 December.

Michael Elalouf, CFO, iwoca said: “Small business owners have had an incredibly tough year, and we’re grateful that we’ve been able to play our part in helping them to get through this crisis.

“With the recent CBILS extension, our focus is now on reaching as many business owners as possible who think they could benefit from Government backed finance. iwoca stands ready to help those customers who are struggling to get the support they need from the high street banks during this time.”

Garry Barker, Managing Director of property development and construction company – Dream Developments – and iwoca CBILS customer: “We develop commercial premises for local businesses. Pre-pandemic we had big expansion plans but these were shelved due to the lack of mainstream funding. To survive, we’ve had to adapt – we’ve diversified into developing storage containers instead of buildings for our clients, to address a local shortfall in availability. We’d have never been able to pivot the business and go down this path if it were not for the government schemes and of course iwoca. Being able to invest this way helps our business, local businesses and the general public at a very difficult time.”

ENDS

Images

Michael Elalouf, CFO of iwoca here.

Garry Barker, MD of Dream Developments here – full case study and contact details available on request.

Notes to editor

  1. Figures relate to period from 21st September – 18th October.

  2. iwoca raises debt financing to scale CBILS to new customers: here.

  3. Small businesses can apply for iwoca’s Coronavirus Business Interruption Loan Scheme here.

About iwoca: iwoca is unlocking economic growth by expanding the financial possibilities available to small business owners. Since launching in 2012, we have made funding available to 50,000 businesses and have raised over £400 million in equity and debt finance. For more information go to www.iwoca.co.uk, like our Facebook page and follow us on Twitter @iwoca and Instagram @iwoca.

Analysis: 

CBILS approvals share: 

HM Treasury data (link) outlines the number of CBILs applications and approvals on a weekly basis since May 10. The Treasury’s data shows that between 20 September and 18 October 6,509 CBILs applications were approved across the UK, from this we can calculate that 1 in 18 of these were approved by iwoca.

Growth in CBILS approvals: 

To calculate the monthly breakdown of the number of CBILs approved across the UK the same HM Treasury data is used and shows that between 5 July and 16 August 6,873 CBILs were approved, between 16 August and 20 September 6,176 CBILs were approved, and 20 September and 18 October 6,509 CBILs applications were approved. Using these monthly figures and applying them to the CBILs approvals by iwoca during the periods of 5 July to 16 August, 17 August to 20 September, and 21 September to 18 October respectiving, we can see the percentage of applications approved and the growth in approval by iwoca during each monthly period.