Zempler Bank has announced a new partnership with SME lender iwoca.

The digital bank, which serves start-ups and microbusinesses, said the move forms part of its plans to expand its SME offering.

Zempler, formerly known as Cashplus Bank, was granted a UK banking licence in February 2021.

Available through the bank's marketplace, the partnership will allow customers to borrow between £1,000 and £1 million with flexible repayment terms.

iwoca’s business loans can be used to purchase stock, invest in growth plans, or simply smooth cash flow.

Businesses can apply to the new service in minutes, without affecting their credit score.

Customers also benefit from early repayment with no fees, alongside a dedicated account manager to guide them through the process.

According to research from Zempler, 44 per cent of SMEs cite access to funding as the biggest barrier to launching their business.

The bank said that these concerns are unlikely to subside, with iwoca’s Q2 SME Expert Index finding that 76 per cent of UK finance brokers predict that SMEs’ demand for finance will rise in the coming months.

“SMEs are a vital driver of jobs and growth within the UK economy, but many face unnecessary barriers when it comes to accessing the finance they need to grow," said Rich Wagner, chief executive, Zempler Bank. "Our research shows that access to funding is one of the biggest barriers to small business growth.

"By adding iwoca to our marketplace and offering flexible funding options, we’re making it easier for our customers to unlock their growth potential.”

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