iwoca SMB Lending API

Known Gotchas

• ⚠ CREDIT DECISION ASYNC PATTERN: iwoca credit decisions for SMB applications are not always instant; automated lending embedding must handle async decision pattern (application submitted → webhook notification of decision); synchronous application-to-decision assumption creates timeout failure for manually reviewed applications
• ⚠ FLEXI-LOAN CREDIT LIMIT REDUCTION NOTIFICATION: iwoca may reduce or withdraw flexi-loan credit limit based on business performance monitoring; automated working capital draw scheduling must verify current available credit before draw; automated draw against previously available limit that has been reduced creates rejected draw at critical cash flow moment
• ⚠ FAIR LENDING EXPLANATION REQUIREMENTS: UK FCA Consumer Duty requires clear explanation of credit decline reasons; automated decline notification to SMB applicants must provide adequate explanation; automated rejection without adverse action explanation creates Consumer Duty compliance gap
• ⚠ REVOLVING CREDIT REPAYMENT BUFFER MANAGEMENT: iwoca flexi-loan revolving credit requires timely repayment to maintain facility; automated repayment scheduling must maintain buffer before due date to account for bank transfer processing time; automated repayment initiated on due date creates late payment if bank transfer not same-day settled
• ⚠ OPEN BANKING DATA QUALITY VARIANCE BY BANK: Open Banking account data quality varies by UK bank; automated underwriting relying on Open Banking transaction categorization from banks with lower data quality creates less accurate credit assessment; implement data quality scoring and fallback to accounting data for banks with incomplete Open Banking categorization