Key facts
- Iwoca has closed a new £250 million debt facility.
- The facility was provided by Waterfall Asset Management and a major bank.
- Iwoca has reportedly appointed Qatalyst to explore a sale process.
- The company is expected to be valued at over £1 billion if sold.
- Demand for larger loans from SMEs has increased, with loans between £50,000 and £100,000 nearly doubling in share.
Small business lender Iwoca has secured a significant new £250 million debt facility from a combination of a major bank and private credit firm Waterfall Asset Management. This move comes shortly after reports emerged that the fintech company has engaged investment bank Qatalyst to explore a potential sale process, with expectations of a valuation exceeding £1 billion.
Iwoca's decision to secure additional funding is driven by a notable increase in demand for larger loans from British small and medium-sized businesses (SMEs). Data from Iwoca indicates that the proportion of loans to SMEs valued between £50,000 and £100,000 has nearly doubled, rising from 27% to 42%. This surge in demand has prompted Iwoca to increase its own borrowing capacity to meet these needs.
In 2025, Iwoca reported a 60% increase in the cash lent to small businesses, positioning it as one of the UK's rapidly growing fintech firms. Romain Guileminet, Iwoca's head of capital, stated that the new facility will enable the company to provide more businesses with the support they require, backed by strong institutional partners.
The exploration of a sale is reportedly in its initial stages, with a person familiar with the matter noting that there is a possibility that no transaction will occur. This development aligns with a broader trend of consolidation and deal-making within the fintech and SME lending sectors.