Startup Model – Short Term Finance to SMEs

THE MODEL: A startup which offers SMEs access to short term financing with no paperwork. Typically finance is offered to fund gaps in cash flows and for stock purchases.

STARTUPIwoca (British startup)

online credit facility


Core Idea – Access to short term financing for SMEs.

Benefits to Users – Users can get funds by simply linking their online accounts (such as Paypal, Amazon etc.) or by uploading bank statements. An offer is given within hours of doing so. Loans are unsecured and have no documentation or origination fee attached.

Ease of Use – Loans are approved and available within hours. Money can be transferred to your bank account 24*7 and interest is charged pro rata based on the time you take to repay the loan.


Competition – The startup is competing with banks and other established financial institutions. Building trust will be key.

Asset Performance – Lending to SMEs without collateral is risky. Bad debts can be an issue of concern.

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