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YouLend Surges with $5.1B Boost for Revenue-Based Financing

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TLDR:

YouLend, a global embedded finance platform, has secured a financing deal that will allow it to offer an additional $5.1 billion in revenue-based financing to small- and medium-sized businesses (SMBs). The funding will be accessible through partnered global eCommerce sites, tech companies, and payment service providers such as Amazon and eBay. The transaction involves J.P. Morgan acting as a senior lender and Castlelake providing subordinate debt. YouLend’s embedded finance platform uses AI-driven decision-making models to assess a business’s health and provide accurate financing opportunities, thus enhancing financial inclusion for underserved SMBs.

Key points:

  • YouLend has secured a financing deal to extend $5.1 billion in revenue-based financing to SMBs.
  • The funding will be accessible through partnered eCommerce sites, tech companies, and payment service providers like Amazon and eBay.
  • The transaction involves J.P. Morgan as a senior lender and Castlelake as a subordinate debt provider.
  • YouLend’s embedded finance platform uses AI-driven decision-making models to assess a business’s health and provide accurate financing opportunities.
  • The funding from J.P. Morgan will support YouLend’s goal of empowering more businesses across the European Union and the United Kingdom with access to embedded finance experiences.

Global embedded finance platform YouLend has secured a financing deal that will enable it to extend $5.1 billion in additional revenue-based financing to small- to medium-sized businesses (SMBs). This financing will be accessible through partnered global eCommerce sites, tech companies, and payment service providers such as Amazon, eBay, and Just Eat Takeaway.com. The private securitization transaction involves J.P. Morgan acting as a senior lender and Castlelake providing subordinate debt. J.P. Morgan joins other active capital providers such as AllianzGI and Castlelake. The collaboration with J.P. Morgan showcases YouLend’s commitment to closing the funding gap for SMBs.

YouLend’s embedded finance platform uses artificial intelligence-driven decision-making models to provide accurate assessments of a business’s health. This approach enhances financial inclusion by opening up financing opportunities for underserved SMBs. The funding from J.P. Morgan will also support YouLend’s goal of empowering more businesses across the European Union and the United Kingdom with access to seamless embedded finance experiences. By reducing YouLend’s cost of capital, this facility enables the company to offer competitive rates and terms to its global partners and their merchants.

This financing deal follows a lending milestone for YouLend, as the company has recently celebrated providing 150,000 instances of funding to SMBs across the EU, the UK, and the US since its launch in 2015. YouLend-backed SMBs have experienced a 26% uplift in sales in the six months following funding, contributing $8.6 billion in revenue to the GDP across YouLend’s core markets.

YouLend previously partnered with Amazon in June to provide financing to small businesses in the UK. This partnership allows merchants to receive cash advances linked to their sales and make repayments as they earn. In November, YouLend and open banking network Plaid reported that their partnership developed a financing process for SMBs in Europe that is three times faster than that of traditional lenders and has a 90% approval rate.

In conclusion, YouLend’s financing deal with J.P. Morgan allows the company to extend $5.1 billion in revenue-based financing to SMBs through partnered global eCommerce sites, tech companies, and payment service providers. This deal demonstrates YouLend’s commitment to closing the funding gap for SMBs and empowering more businesses with access to embedded finance experiences. By utilizing AI-driven decision-making models, YouLend enhances financial inclusion and has already seen success in boosting sales and contributing to GDP growth in its core markets.

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