Iwoca debt facility reaches £250mn as sale reports circulate

Iwoca debt facility financing has reached £250 million through an arrangement with WAM Capital and a UK bank, Finextra reported. The British small-business lender plans to use the facility to expand lending capacity after issuing 58,000 loans worth more than £1.3 billion in 2025, a 60% rise in lending value from 2024, according to Finextra.

The new funding arrives alongside renewed attention on iwoca’s ownership. Sky News reported that the company has hired Qatalyst Partners, the technology-focused investment bank, to oversee an auction that could value the lender at more than £1 billion.

Sky News said strategic buyers and financial investors are expected to assess potential offers, citing sources. Iwoca’s existing backers include Augmentum Fintech and Commerzbank’s CommerzVentures arm, according to Finextra.

What is iwoca and how does it lend?

Iwoca is a UK lender focused on small and medium-sized enterprises. Finextra reported that its embedded lending technology lets businesses access loans through partner platforms, including accountancy software applications and digital neo-banks.

The company also offers iwocaPay, a business-to-business payments product. In 2022, it launched a Revenue-Based Loan with eBay, under which repayments are calculated as a percentage of a company’s monthly sales, according to Finextra.

How does a debt facility support SME lending?

For a lender, a debt facility provides borrowing capacity from external capital providers that can be used to fund customer loans, subject to agreed terms. In iwoca’s case, Finextra reported that the £250 million facility is intended to strengthen its ability to lend to small businesses.

The reported facility also shows how non-bank lenders can rely on wholesale funding partnerships to expand origination. Finextra did not report the pricing, maturity, structure or the identity of the UK bank, which it described only as a “leading UK bank”.

What is known about the reported iwoca sale?

Sky News reported that Qatalyst Partners has been brought in to run a sale process expected later this year. The broadcaster said the auction is expected to attract interest from both strategic and financial investors and could fetch more than £1 billion.

The sale process remains reported rather than announced in the details carried by Finextra. The confirmed financing, however, gives iwoca additional lending firepower at a time when investors are also assessing the value of private fintech lenders serving smaller companies.

Small-business credit remains a closely watched area for banks, fintechs and policymakers because many SMEs rely on rapid working-capital finance to manage cash flow. Iwoca’s reported growth in loan volumes and the size of the new facility underline continued investor interest in technology-enabled SME lending, while the Sky News report points to possible consolidation or ownership change in the sector.

This story draws on original reporting from Finextra Research.