The announcement follows the business hitting net profitability for the fourth consecutive quarter.

In January, iwoca secured an increase and extension to its existing funding line from £125m to £170m with long-standing partner Pollen Street Capital.

With the new £200m funding line from Barclays and Värde, this now takes the lender’s total debt commitments to over £850m.

The facility aims to equip iwoca to meet growing SME demand for working capital; according to iwoca’s Q2/23 SME Expert Index, more than four-in-five brokers (84%) say high-street banks are reducing their appetite for funding SMEs — this increased by 7 percentage points since Q1 2023.

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Christoph Rieche, CEO and co-founder of iwoca, commented: “With this new funding, we’re in an even better position to help smaller businesses in the UK and Germany at a time of economic uncertainty.

“These SME businesses form the basis of a strong economy, and iwoca will lead from the front to help them thrive and achieve their goals.”

Aneek Mamik, global head of financial services and diversified private credit at Värde, added: “We are pleased to support the expansion of commercial financing opportunities in the UK through iwoca.

“iwoca’s differentiated sourcing and underwriting capabilities give us access to a high-quality portfolio of commercial businesses.

“This builds on our leading position in providing commercial lending and leasing solutions to parts of the economy increasingly underserved as banks are less able to meet the full spectrum of the demand.”

Across the UK and Germany, iwoca has lent over £2.5bn since its launch in 2012 across more than 120,000 business loans.