£12.5m Accessed by Businesses Through PayPoint-YouLend Partnership

£12.5m funded through PayPoint-YouLend partnership

The partnership between YouLend and PayPoint, a leading UK payment service provider and retail technology company, has made significant strides in supporting small businesses across the UK. 

• Over the past year, this partnership has facilitated more than 750 fundings amounting to £12.5 million.
• Instead of fixed monthly repayments, a percentage of every card transaction is used to repay the funding - making repayments proportional to card sales.
• The funding, which is open to any eligible business, is designed to free up funds to focus on growth, buy stock or simply assist with cash flow.

‍

‍

What is the funding used for?

Amidst a turbulent economy, the collaboration has enabled PayPoint to provide their business customers with the necessary financial support to navigate cash flow shortages. YouLend’s embedded financing platform links directly to PayPoint’s retail software to enable faster assessment, underwriting and offer creation, helping businesses to access funds effortlessly to pursue growth, purchase stock, or manage cash flow.

Unlike incumbent lenders systems that demand fixed monthly repayments, this technology-driven funding model allows businesses to repay financing via a small percentage leveraged on their card transactions through PayPoint. This ensures that repayments are directly proportional to the business's card sales, offering a flexible and stress-free repayment structure.

‍

Key to the appeal of YouLend’s service was the ability to review and iterate on the financing offers available, varying their application criteria and needs to determine the optimum financing arrangement, timeline and sweep rate for their business. With the capital they secured, Pay Store was able to expand their operations to increase turnover and profitability as they grew their business.

Mark Latham, Managing Director, Card Services, PayPoint, said: “As lending conditions have become tougher recently, our Business Finance product is very much open for business, with YouLend’s rates mostly unchanged since this time last year. As a result, we are seeing even more businesses using the facility for a wide range of purposes such as buying new stock, refurbishing the premises, boosting cash flow, or even expanding their business with new equipment and new locations.”

How does PayPoint funding work?

• Merchants can repay as a fixed percentage of every sale (revenue-based financing)
• Access to funding in as little as 24 hours, once application is reviewed and approved by YouLend
• Simple, affordable fee: Merchants pay a flat fee that is agreed up-front (from 3%)
• Flexible top-ups once a merchant is on-board and receive same-day funding top-ups

Tom Longhurst, Head of Strategic Partnerships, YouLend, said: “Our partnership with PayPoint and Handepay has enabled us to widen access to much-needed, fast, flexible, and affordable capital for UK businesses. Our aim is to continue to support eligible businesses with the financing required to grow and thrive.”