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Global embedded finance platform you lend has entered into a financing agreement to provide an additional £4 billion (approximately $5.1 billion) of revenue-based financing to small and medium-sized businesses (SMBs).
The funding will be made available through partner global e-commerce sites, technology companies and payment service providers including Amazon, Dojo, eBay and Just Eat Takeaway.com, YouLend said on Monday (January 29). stated in a press release.
The private securitization transaction includes JPMorgan acting as senior lender and Castle Lake providing subordinated debt, according to the release. JP Morgan joins other active capital providers such as AllianzGI and Castlelake in YouLend.
The partnership with JPMorgan underscores YouLend’s commitment to closing the financing gap for small and medium-sized businesses, the release said.
YouLend’s embedded financial platform uses artificial intelligence-driven decision-making models to accurately assess the health of a business, according to the release. This approach strengthens financial inclusion by providing financing opportunities to underserved small and medium-sized businesses.
The JPMorgan funding also supports YouLend’s goal to provide more businesses in the European Union and the United Kingdom with access to a seamless embedded financial experience, according to the release.
This capability reduces YouLend’s cost of capital and allows the company to offer competitive rates and terms to its global partners and their merchants, the release states.
The financing agreement follows YouLend’s financing milestone, with the company recently celebrating having made 150,000 loans to small and medium-sized businesses in the EU, UK and US since its founding in 2015, according to the release. Ta.
According to the release, YouLend-backed SMBs saw a 26% increase in sales in the six months following the funding, contributing £6.8 billion (approximately $8.6 billion) to GDP across YouLend’s core markets.
Amazon announced in June that it was partnering with YouLend, with the aim of helping small and medium-sized businesses in the UK access funding in a tough lending environment. Through this partnership, merchants will receive cash advances based on their sales, and will be able to repay them based on their income.
In November, YouLend and open banking network Plaid partnered to develop a lending process designed for small and medium-sized enterprises in Europe that was nearly three times faster than traditional lenders and achieved a 90% approval rate. reported.
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