YouLend is an embedded business finance tool used and trusted by some of the biggest names in eCommerce, including Shopify, eBay, and Foodhub.
In addition to working with a payment processing portal to allow immediate access to funds paid by card rather than waiting for the balance to clear in your account (for a low fee of around 0.5%), YouLend offers merchant cash advance services of up to £1,000,000 to business users, repaid from future card transactions.
YouLend charges slightly higher fees and takes a larger percentage from your payments than some rivals, but this is tempered by greater flexibility in criteria – a business that has been trading for as little as three months can apply for a cash advance from YouLend.
YouLend business loans and finance
- Pros and cons
- Merchant cash advance
- Instant Payout
- Business loans
- Business credit cards
- Asset finance
- Invoice finance
- Commercial mortgages
- Business vehicle finance
- YouLend key information
- YouLend reviews
- Business eligibility criteria
- Business finance alternatives
- Additional considerations
Pros and cons of YouLend for business finance
|✓ Borrow up to £1,000,000 against future card sales||✗ Only available against card payments|
|✓ 90% approval rate on applications||✗ Minimum card income of £1,500 per month required|
|✓ Only need to have been trading for three months||✗ Set-up fee is higher than some competitors|
|✓ Excellent online reviews on TrustPilot||✗ Minimum repayment percentages can be a little higher than some competitors|
Merchant cash advance
YouLend is primarily a specialist in merchant cash advances against future sales made by debit or credit card. If you apply for a cash advance from YouLend, you will be offered a lump sum – typically paid out within 48 hours – which is automatically repaid as a percentage of any transactions that follow.
YouLend is quite flexible about how who qualifies for this service, approving nine out of ten applications that meet the criteria of at least £1,500 in monthly card sales and at least three months of trading history.
The maximum sum offered by YouLend is £1,000,000, but how much you are entitled to borrow depends on how long you have been trading, and your average monthly turnover. For example, a business that has been trading for 18 months and brings in an average of £3,000 per month can borrow up to £5,400. A business that is just three months old and brings in £1,500 per month will find lending capped at £1,350.
YouLend will also take a fee for their service, starting from 3% of the total sum advanced, and set slightly higher minimum repayment percentages than some competitors. You may only be offered an advance if you are willing to sacrifice as much as 20% of your card income from every transaction. Ensure this is a realistic repayment that will not impact your ability to meet everyday business running costs.
Another service that YouLend offers, which is similar to a cash advance but comes with considerably lower fees, is instant payout. This service allows you to claim funds paid by a card as soon as your customer completes the transaction, rather than waiting several days for the payment to be processed by your service provider. YouLend will reclaim this money, plus a service fee of around 0.5%, when the funds clear.
✗ Not available from YouLend. See best business loans.
Business credit cards
✗ Not available from YouLend. See best business credit cards.
✗ Not available from YouLend. See best asset finance.
✗ Not available from YouLend. See invoice factoring.
✗ Not available from YouLend. See commercial mortgages.
Business vehicle finance
✗ Not available from YouLend. See business vehicle finance.
YouLend key information
|Phone number||020 3827 2870|
|App downloads||N/A – YouLend embeds into your business website|
|Number of branches||N/A – YouLend is an online business|
|Review platform||Score||Number of votes|
|Smart Money People||Not reviewed||N/A|
|Average score||4.9/5||2,287 total votes|
YouLend business eligibility criteria
To qualify for borrowing from your YouLend, you must meet the following criteria.
- Accept card payments from clients and customers – YouLend does not lend against invoices raised on a credit basis
- Take a minimum of £1,500 per month in card transactions
- Have at least three months of trading history
YouLend business finance alternatives
365 Business Finance and Liberis are direct competitors to YouLend in the sense that these providers specialise in merchant cash advances, though they do not offer an instant payout facility. Iwoca is a fine halfway-house that offers a similar service in the form of IwocaPay in addition to cash advances, or you could consider Capify, Merchant Money, or Nucleus Commerical Finance if you need a wider range of product options, including traditional lump sum business loans.
YouLend additional considerations
To learn more about YouLend and how this provider could benefit your business, take a look at this interview with CCO Jakob Pethick.
YouLend typically approves successful applications for finance within 24 hours, releasing the requested funds within 48 hours. Once you have successfully applied for a cash advance from YouLend, you can receive future top-up advances on the same day as the application.
The minimum you can borrow from YouLend is £1,000, and the maximum is £1,000,000. How much you will qualify to borrow depends on your monthly income through card payments, and how long you have been trading. Higher turnover and a lengthier trading history will entitle you to larger lending.
Head to the YouLend website and provide the requested information surrounding your business model. YouLend will respond to this with one or more offers of funding, explaining how much you are entitled to borrow, the fee that YouLend will charge, and what percentage of your future transactions the lender will claim as repayment on your cash advance.
No, when you are provided with a quote you will know exactly how much you will be asked to repay with no nasty surprises down the line. A one-off fee, which could be anything from 3% of the total cash advance, will be added to the total sum repayable upon successful application.
No, there is no fixed term or deadline for repaying your advance from YouLend. If your sales drop, you can extend the repayment period until they pick up again. You can also make larger repayments to close your balance earlier if you prefer.
No, the cash advance provided by YouLend is an unsecured loan, but failing to keep up with repayments may result in action being taken against your business.