UK Bond Network investors helped the company to raise their full funding requirement, enabling them to extend new loans to borrowers and to refinance short-term bonds as they mature.
iwoca provides credit facilities of between £1k and £100k to small businesses across the UK, Germany, Spain and Poland. Founded in 2012, iwoca has issued over £45m in loans and has recently completed a $20m Series B equity raise.
Michael Elalouf, CFO, iwoca
“UK Bond Network’s tech-enabled approach helps us diversify our financing options and will be crucial to supporting growth amongst European SMEs.”
Michael Elalouf, Chief Financial Officer at iwoca, commented:
“We aim to offer a flexible financing solution to Europe’s twenty million small businesses. Given we lend directly from our balance sheet, our appetite for debt financing scales as we grow. UK Bond Network’s tech-enabled approach helps us diversify our financing options. This will be crucial to increase access to credit and support growth amongst European SMEs.”
Amount raised: £1,000,000
Interest rate: 9%
Security: Secured against a collateralised pool of loans, with covenants requiring there to be a minimum level of cash and performing loan coverage at any one time
Term & Repayment: 360 days, repaid quarterly in arrears
SIPPable: Yes – through our partnership with SIPPclub
Underwrting: This bond was underwritten for the minimum requirement of £1,000,000.
The most active day of the 2-week auction was 19th August, where 7 bids totalling £227,000 were made.
The largest bid made was for £107,000, with two £100,000 bids and four £50,000 bids also forming part of the bond.
Chris Maule, the CEO of UK Bond Network, discusses the platform's decision to support iwoca:
“As an alternative funder ourselves, we're well aware of the potential offered by the wider alternative finance market; iwoca's approach brings an incredibly exciting proposition to this, and one we're happy to offer our investors.
"Our due diligence process means that we examine the senior management team of any business we support, and the financial experience visible at iwoca [was] a significant source of confidence for us. Many leading investors have already backed iwoca, both by directly investing in the equity of the company as well as funding the growth of their loan book via previous debt issues - we're very happy to be adding our and our investors' names to this list."