YouLend, a global embedded financing platform, today announced a significant expansion in its financial capacity.
The company, which specializes in revenue-based financing solutions, has secured a new financing facility with funds managed by Castlelake, a global alternative investment firm known for its expertise in asset-based private credit. This strategic financial boost is set to potentially extend over $1bn in financings to US small and medium-sized businesses (SMBs) over the next three years.
The new facility is a continuation and expansion of YouLend’s relationship with Castlelake, which previously included providing subordinated debt to support YouLend UK’s private securitization transaction. With this latest agreement, YouLend aims to significantly increase its origination capabilities in the United States, thereby providing fast and affordable financing solutions to an even broader range of SMBs.
YouLend operates with a strong commitment to facilitating growth for SMBs by offering tailored financing options that are quick and easy to access. This approach has led to a 90% approval rate and rapid time-to-market for its partners, contributing significantly to the economic vitality of small businesses across the country.
Anders Torpe Christoffersen, CFO at YouLend, expressed enthusiasm about the new facility, stating, “The United States is a critical priority for us. We’re thrilled to accelerate origination growth through this facility with Castlelake. It allows us to further scale our platform as we seek to provide the best possible terms to our partners and their merchants. By increasing capital capacity and adding more diversification to our investor base, we believe we can better help small and medium sized businesses access the capital they need to thrive.”
Echoing this sentiment, Alex Curcio, Partner, Specialty Finance at Castlelake, added, “Castlelake is pleased to expand its existing relationship with YouLend through this new financing facility for US merchants. We believe the global SMB finance sector offers interesting asset-based investment opportunities for institutional investors and that private credit solutions are playing an increasingly important role in meeting the demand for capital from SMBs.”
Previously, YouLend announced a major lending milestone, celebrating 200,000 instances of funding to SMBs globally. Partners have estimated that YouLend-backed SMBs experience a 26% uplift in sales in the six months following funding, with these sales contributing more than $10bn to GDP across YouLend’s core markets to date.
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