Iwoca Spreads SME Lending To Germany

U.K. alternative lender iwoca has seen significant growth this year, recently striking a deal with Alibaba to secure funding for small businesses across the U.K. that want to procure goods from Chinese suppliers. The company announced its latest business venture last Friday (April 24) that sees the company expanding over U.K. borders yet again.

According to reports, iwoca will launch small business lending operations in Germany, the latest market for the company that already operations in the U.K., Poland and Spain. Germany’s small businesses have a particularly difficult time accessing working capital, reports said, with more than 40 percent of SMEs with fewer than five employees getting rejected for bank loans in the first half of 2014.

Iwoca’s new expansion will offer nearly $55,000 worth of credit to SME applicants.

The company was one of just two alternative lenders in the U.K. chosen by Alibaba last month to launch its SME lending initiative, aimed at facilitating U.K. businesses in their search for credit as well as Chinese suppliers in their search for new buyers.

But iwoca’s reported launch in Germany could see some speed bumps. Reports released earlier this month said that German officials are set to pass new regulations that limit how small businesses can raise working capital through online crowdfunding platforms and place restrictions on who can become an investor.

The new rules would include the requirement that fundraisers looking to raise more than $2.7 million must file a detailed prospectus and disclose all investment risks to the Federal Financial Supervisory Authority.