Small business lender Iwoca has announced the closure of a substantial new £250m debt facility, a move designed to significantly enhance its lending capabilities for UK small and medium-sized enterprises (SMEs). This financial boost arrives amidst growing speculation that the fintech is exploring a sale, with early estimations suggesting a valuation exceeding £1bn.
The credit line has been secured from a prominent financial institution and private credit firm Waterfall Asset Management. This fresh capital will enable Iwoca to address the increasing demand from British SMEs for larger loan amounts, a trend highlighted by the company's own data. The share of loans issued to SMEs valued between £50,000 and £100,000 has seen a near doubling, rising from 27 per cent to 42 per cent, indicating a clear shift in how small businesses are seeking to finance their growth.
Over 2025, Iwoca demonstrated robust growth, increasing its lending to small businesses by 60 per cent. This performance has positioned the group as one of the UK's fastest-growing fintech companies. Romain Guileminet, Iwoca’s head of capital, stated that the new facility will allow them to offer more comprehensive support to businesses, underpinned by strong institutional partnerships.
The announcement of the new debt facility coincides with reports that Iwoca has engaged boutique tech investment bank Qatalyst to explore a potential sale. Sources suggest this process is in its initial stages, with Qatalyst primarily tasked with assessing market interest. While a sale could fetch a valuation upwards of £1bn, it remains uncertain whether any transaction will ultimately materialise.
This potential deal occurs within a dynamic period for the fintech and small business lending sectors. Other notable activities include Firstrand's consideration of divesting its SME lender Aldermore, following its involvement in the motor finance scandal, and Oaknorth awaiting a federal American bank licence after its acquisition of US-headquartered Community Unity Bank a year ago. Such movements underscore a broader trend of consolidation and strategic repositioning within the industry.