Small business lender iwoca has raised an additional £50m in a debt facility provided by a syndicate of banks.

The debt increase was led by NIBC Bank, with existing lenders in this syndicate – Shawbrook Bank and Pollen Street Capital – also participating.

The lender will now use this facility to provide funding to micro and small business customers.

Michael Elalouf, CFO at iwoca, said the facility would allow it to provide critical finance to businesses which were underserved by banks.

“Our mission is to break down barriers that stand between small business and finance. 

“We are proud to have provided funding to 20,000 small businesses already, but we’re only scratching the surface and hope to be able to reach many more.”

Since its launch, iwoca has originated more than £400m in loans to small businesses and Karan Burman, associate director at Shawbrook, said it recognised the value of iwoca’s proposition in the alternative finance space.

“…At Shawbrook, we were very happy to provide iwoca with their first institutional funding line back in 2016, and to extend this support now as the business continues to grow.”

Nils Schaffner, director at NIBC Bank, added: “At NIBC, our ambition is to make a difference for our clients; we seek to be entrepreneurial, inventive and professional.

“By providing iwoca with additional financing, we are proud to have supported the company in order to take the next step on their growth path in a decisive moment.

“We are confident that this supports the company in its ambition to become a European market leader.”