PayU and iwoca offer funding for smaller fintechs
A collaboration between the payments services provider and the lender aims to offer funding for SMEs, particularly those in the eCommerce and eService industries
A collaboration between the payments services provider and the lender aims to offer funding for SMEs, particularly those in the eCommerce and eService industries
The Poland-based international lending firm iwoca and payment service provider (PSP) PayU are joining forces to make it easier for small and medium-sized (SME) entrepreneurs, particularly those in the eCommerce and eService industries, to obtain financing for growth. The collaboration “marks the first venture of this kind in the European fintech market” according to the two partners.
The solution enables the entire lending process to take place online and allows for faster decision making. Credit approval decisions on loans of up to zloty 20,000 (PLN) (US$5,350/€4,800) are made within minutes, while applications for loans exceeding PLN 20,000 (to a maximum of PLN 150,000) take a few hours.
iwoca said that the partnership with PayU would assist young entrepreneurs who are unable to secure financing from traditional lenders. Four in five microenterprises in Poland do not have business loans, according to the Credit Information Bureau, limiting pathways to growth.
The lender has established several similar partnerships with banks, enterprises software companies, and online marketplaces across Europe. Together with Xero, the UK’s biggest accounting application, iwoca offers loan application integrations that reduce the time to financing.