Iwoca is a lender offering finance to small UK businesses. Not only does Iwoca offer loans to UK businesses, but also to businesses operating all across Europe. Since 2012, Iwoca has been helping businesses get the capital they need so that they can grow and prosper. Thanks to a revolutionary risk model, Iwoca is able to offer loans to small businesses that might face challenges when trying to find financing elsewhere. This business model involves relying on trading data and company industry to determine the company’s future financial health and ability to pay back a loan.
APPLICATION REQUIREMENTS:
Those interested in applying should be aware of Iwoca’s application requirements. It’s important that applying businesses are UK businesses operating as sole-traders, partnerships, or limited companies. Startup companies can apply, but they will usually be limited to funding of £10,000 or under.
LOAN AMOUNT AND CHARGES:
Loan amounts with Iwoca range from between £1,000 and £100,000. Usually, companies are limited to a loan amount by their monthly revenue. The loan amount is typically no greater than one month’s revenue for an applying company. Interest rates vary from between 2 percent and 6 percent depending on a variety of factors. Companies borrowing from Iwoca don’t have to pay any early repayment or arrangement fees.
PROCESS:
The process of applying for a loan from Iwoca involves first signing up and then linking business accounts to Iwoca. Applicants can upload banking statements or VAT returns so that Iwoca can get an idea of a company’s monthly or annual income. After such information is uploaded, Iwoca will quickly make a decision on whether or not the company is granted approval for a loan. The application process itself only takes a few minutes. Once a company is approved, loan funds will be deposited within only a couple of hours.
PAYMENT:
Those who have taken out a loan with Iwoca can make repayments on a monthly basis. One easy way to handle repayment is to have repayments automatically arranged through the business owner’s debit card. Also, companies borrowing from Iwoca can go online and manually make payments using their online Iwoca account. It’s a good idea for companies to pay off their loans early if possible to minimize the amount they’re paying in interest.
