Investment & Fund Management

The European Investment Fund (EIF) and iwoca entered into a COSME agreement aimed at enhancing access to finance for small and medium-sized enterprises (SMEs) in the UK. The specific challenge faced by iwoca was the need to provide financial support to a significant number of SMEs that were underserved by traditional banking institutions. This partnership was designed to address the financing gap for these businesses, which are crucial to the economy.

To tackle this issue, the EIF provided a guarantee scheme that enabled iwoca to lend GBP 40 million (approximately EUR 60 million) to over 3,000 SMEs. The loans, which could be as much as £100,000, were made possible through a technology-driven risk platform that iwoca employs. This platform analyzes thousands of data points for each application, allowing for rapid approval of loans, often within hours.

The results of this initiative were significant. It not only facilitated access to finance for over 3,000 SMEs but also contributed to job creation and economic growth in the UK. The partnership exemplified a successful model of leveraging EU funding to support local businesses, demonstrating the effectiveness of the Investment Plan for Europe in action.