YouLend Boosts $1bn US SMB Funding Potential with Castlelake Facility – Fintech News Europe
USD Financing to Power Expansion Plans, Potentially Extending $1 Billion in Capital to Small Businesses Over the Next Three Years
ATLANTA, Oct. 21, 2024 – YouLend, a global leader in embedded financing, has announced the securing of a new three-year financing facility with funds managed by Castlelake, a global alternative investment firm specializing in asset-based private credit. This funding agreement will enable YouLend to significantly expand its origination capabilities in the US, potentially unlocking $1 billion in revenue-based financing for small and medium-sized businesses (SMBs).
This partnership builds on the ongoing relationship between YouLend and Castlelake, which has already resulted in over $1.3 billion in SMB financing across the UK and Europe. To date, YouLend has provided funding to more than 200,000 SMBs globally, with Castlelake’s support instrumental in its previous success.
The newly secured facility increases YouLend’s capital base in the US, following strategic collaborations with platforms like Etsy, FreshBooks, and Paysafe. The partnership with Castlelake will now allow YouLend to ramp up originations and deliver quick, affordable financing solutions to a wider range of SMBs across the United States.
“The United States is a key market for us, and we’re excited to accelerate our growth here through this facility with Castlelake,” said Anders Torpe Christoffersen, CFO of YouLend. “By boosting our capital capacity and diversifying our investor base, we can offer even more attractive terms to our partners and their merchants, ensuring that more SMBs get the capital they need to grow.”
Alex Curcio, Partner at Castlelake, also commented on the expanded partnership: “We’re pleased to continue our collaboration with YouLend through this financing facility. The global SMB sector presents unique investment opportunities, and private credit solutions like ours are increasingly critical in meeting the growing demand for capital.”
With a 90% approval rate for SMB financing and quick time-to-market, YouLend has already made a significant impact in the US. As the company celebrates the milestone of supporting 200,000 SMBs globally, it estimates that SMBs funded by YouLend have seen a 26% increase in sales within six months of receiving capital, contributing over $10 billion to GDP in YouLend’s key markets.
About YouLend
YouLend is a global embedded financing platform that powers flexible financing solutions for many of the world’s leading e-commerce and payment platforms, including Amazon, Etsy, Shopify, and Paysafe. Through its AI-driven credit assessment technology, YouLend enables its partners to offer tailored, fast, and affordable financing options to their SMB merchant base. Operating across nine countries, YouLend continues to scale its presence in the UK, EU, and US markets.
