Binq has partnered with iwoca, a leading European SME lender, to facilitate access to funding for businesses and small enterprises based in the UK.
Through integration with Open Banking, businesses can securely connect their accounts via Binq’s app and upload necessary documents. Once connected, eligible companies may review available funding options promptly. Upon application submission, successful applicants receive approval within 24 hours and can access funds immediately.
Funding through Open Banking
In this collaboration, iwoca utilizes real-time data from SMEs’ business banking accounts to assess their eligibility for funding via the Binq app. The integration includes an AI chat function that streamlines the documentation process. Approval times are rapid, with as little as 24 hours required. The funding range offered varies from GBP 1,000 up to GBP 1 million, with terms spanning one day to five years, and no early repayment fees.
According to iwoca’s SME Expert Index, a significant proportion of finance brokers prioritize alternative lenders over traditional high street banks when submitting loan applications. This trend highlights the challenges that mainstream banking institutions face in catering to small and medium-sized businesses’ needs.
Funding is often critical for supporting cash flow and business growth. A survey by iwoca indicates that 73% of SME finance brokers stress the importance of quick decision-making processes for their clients. Binq’s AI chat feature provides insights, tailored funding solutions, and additional services like insurance and energy options to help owners reduce costs and streamline operations.
Binq asserts that this partnership allows UK SMEs swift and convenient access to affordable credit, which is vital for business resilience and expansion. Following the launch of the service, Binq reported processing its first client within just 15 minutes through their AI-driven platform.
iwoca has welcomed the initiative, emphasizing that it aims to enhance the application process by delivering instant offers and updates directly on the Binq platform, without the need for users to leave it.
