London-based fintech lender iwoca has successfully secured a new £250 million debt facility to significantly expand its lending capacity for small and medium-sized enterprises (SMEs) across the United Kingdom. This substantial funding arrangement, provided by Waterfall Asset Management and a prominent UK bank, arrives as the company experiences a period of rapid growth. The new capital is structured to scale with demand, positioning iwoca to better support the evolving financial needs of the UK's business community.
Responding to Surging SME Demand
The new facility is a direct response to a notable increase in demand for business financing, particularly for mid-sized loans. Data from iwoca's SME Expert Index reveals a significant shift, with loan applications between £50,000 and £100,000 comprising 42% of all requests in the first quarter of 2026. This figure represents a substantial rise from the 27% recorded during the same period in the previous year, highlighting a clear trend.
This growing appetite for larger loans is expected to continue, with market analysis indicating a sustained need for flexible capital among scaling businesses. According to the index, 57% of finance brokers anticipate that demand for these mid-sized loans will increase further over the next six months. This forecast underscores the critical timing of iwoca's expanded funding capacity to meet the requirements of ambitious SMEs looking to invest and grow.
A Trajectory of Consistent Growth
This latest financial milestone builds upon a period of sustained expansion for the lender, which has seen its lending value jump by 60% between 2024 and 2025. In 2025 alone, iwoca issued 58,000 loans totaling over £1.3 billion, demonstrating its significant impact on the UK's business landscape. Since its inception in 2012, the company has now provided funding to over 96,000 SMEs, solidifying its role as a key alternative lender.
The company's ability to attract capital is well-established, having completed a series of debt funding rounds over the past two years. These efforts have drawn investment from a host of major financial institutions, including Lloyds, Citi, Barclays, Värde Partners, and Insight Investment. This consistent backing from established partners reflects strong market confidence in iwoca's business model and its credit performance over time.
Strategic Partnerships and Market Confidence
Romain Guilleminet, Head of Capital Markets at iwoca, emphasized the importance of the new facility in enabling the company to scale its support for businesses. He stated that the company has grown to a size where it makes a material impact on thousands of SMEs and their communities every month. Guilleminet added that the backing from leading institutional partners allows iwoca to offer businesses the kind of support they are looking for.
Confidence in the partnership was echoed by James Cuby, Partner and Head of Europe at Waterfall Asset Management. He expressed excitement about extending the funding relationship, which will unlock further lending capacity for UK SMEs that are chronically underserved by traditional lenders. Cuby praised iwoca for its ability to deliver consistent growth while maintaining strong credit performance and expanding its product offerings for its client base.
Strengthening the UK's Business Ecosystem
The infusion of £250 million into iwoca's lending pool is poised to have a tangible effect on the UK's economic ecosystem. By providing accessible finance, the company empowers SMEs to invest in new equipment, scale up operations, and pursue growth opportunities that might otherwise be out of reach. This capital injection helps bridge a critical funding gap often left by traditional banking institutions, fostering innovation and job creation.
In conclusion, iwoca's new £250 million facility marks a significant step in its mission to support the UK's small and medium-sized businesses. Bolstered by strong partnerships and a proven track record, the company is now better equipped than ever to meet the rising demand for flexible and accessible finance. This development not only reinforces iwoca's position as a leading fintech lender but also promises to fuel the growth and resilience of the broader SME sector.