iwoca Reaches Profitability

iwoca Reaches Profitability
10.07.2018 09:26 am

iwoca Reaches Profitability


iwoca, one of Europe’s largest alternative small business lenders,
today announces it reached profitability in the first half of 2018 amid a doubling of revenue
over three successive years.

iwoca launched in 2012 and has since lent £500m to 20,000 businesses. To meet soaring
demand from its small and micro business customer base, iwoca lent a company-record £2.2
million to 137 businesses in a single day at the end of June 2018, funding small businesses
with more than £1,500 per minute.

The alternative lender uses technology to reduce traditional underwriting costs by up to 90%
and has seen 100% year-on-year growth in each of the last three years. The company’s stated
aim is to finance 100,000 business over the next five years.

iwoca’s award-winning technology allows businesses to get approved for a credit line within
minutes through a simple online application process. Customers can draw down the funds as
required 24 hours a day. In Q1 2018, iwoca’s credit line represented ca 9% of the total number
of business overdrafts approved by the members of the British Bank Association, according
to UK Finance.

The increase in lending comes at a time when the overall value of debt products provided by
traditional banks for small businesses is contracting. According to UK Finance, the value of
gross lending to small businesses fell by 13% since Q4 2011, while the total number of VAT
registered small businesses increased by 28% to 2 million over a similar period.

Christoph Rieche, Chief Executive of iwoca, said: “We are building Europe’s leading tech-
enabled small business lender, eliminating the barriers banks have put up to small business

finance - the cumbersome paperwork, long waiting times and unfairly rigid lending criteria - so
that small businesses can get access to the funding they need to realise their full potential.”
“Achieving profitability demonstrates the strength and depth of our business and marks a
significant milestone for iwoca. We have built a strong and trusted brand with a solid customer
base. This is just the beginning as iwoca aims to finance 100,000 more small businesses in
the UK over the next five years.”

Related News

Auriga congratulates Millennium BCP on winning top global banking award

Auriga, a leading supplier of technological solutions for the omnichannel banking and payments industries, and one of Europe’s original FinTech success stories, today applauded... Read more »

Arya Partners with Intuit, Quicken®, and Mint

VSoft Corporation, a global provider of information and technology solutions for financial institutions, announced a strategic alliance with ... Read more »

Fidor Joins Consortium to Create ASEAN Financial Innovation Network’s First Regional API Fintech Marketplace and Sandbox

Fidor Solutions, an innovative provider of digital banking services, today signed an agreement with AFIN to create ASEAN’s... Read more »

Banks will reign supreme in the battle against fintech giants

Asia-Pacific (APAC) is leading the world in the adoption of digital banking due to consumers’ constantly evolving demands, combined with the unbanked potential and benign... Read more »

TransPecos Banks Selects NYMBUS to Launch BankMD.com

NYMBUS, the world’s most advanced revenue and technology solutions company, today announced TransPecos Banks has selected NYMBUS SmartLaunch to outsource the operation of its... Read more »

Lombard Risk, a Vermeg Company, Announces Support of Resolution Planning Reporting and the latest Bank of England Updates

The Bank Recovery and Resolution Directive (BRRD) has been in effect for some time but this will now be accompanied by reporting obligations to both EBA and PRA.

EBA ‘Z... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App