UK fintech lender iwoca has secured a £250 million debt facility, expanding its capacity to provide financing to small and medium-sized businesses while reports suggest the company is exploring a potential £1 billion sale later this year.
The new financing is expected to support further growth of iwoca’s lending operations, allowing the company to issue additional business loans and revolving credit facilities to SMEs across the UK.
Founded in 2012, iwoca has become one of Britain’s leading alternative business lenders by using technology-driven underwriting to provide faster access to capital for companies that may struggle to secure financing through traditional banks. Its digital lending platform relies on real-time business data to assess creditworthiness and deliver financing decisions more efficiently.
The debt facility arrives as reports indicate that iwoca is considering strategic options, including a possible sale that could value the company at around £1 billion. While no formal transaction has been announced, the combination of fresh institutional financing and market speculation suggests the fintech is entering an important phase of its growth.
Alternative lenders have continued to play a crucial role in supporting UK SMEs, particularly as businesses seek flexible funding options amid higher borrowing costs and tighter bank lending standards. Additional lending capacity could enable iwoca to extend financing to thousands more businesses over the coming years.
If a sale proceeds at the reported valuation, it would rank among the most significant fintech transactions in the UK’s alternative lending sector, highlighting continued investor interest in established digital lenders with proven loan portfolios and scalable technology platforms.
