YouLend, a global embedded financing platform, announced that it has secured a new financing facility with funds managed by Castlelake, a global alternative investment firm specializing in asset-based private credit.
This new facility broadens YouLend’s investor base in the US and increases its available capital. Over three years, it has the potential to extend over $1 billion in revenue-based financing to US SMBs. The announcement follows YouLend’s recent strategic partnerships with platforms like Etsy, FreshBooks, and Paysafe in the US.
This financing facility builds on a multi-year relationship between YouLend and Castlelake across multiple European geographies. Last year, funds managed by Castlelake provided subordinated debt to support YouLend UK’s private securitization transaction.
This new agreement will enable YouLend to grow US originations by delivering fast, affordable solutions to even more small and medium-sized businesses.
YouLend has experienced rapid growth in the US in recent years by signing key partnerships to deliver tailored financing options for small businesses. With a 90% approval rate and quick time-to-market for partners, YouLend has already supported thousands of satisfied SMBs nationwide.
This deal follows a major lending milestone as YouLend celebrates 200,000 instances of funding to SMBs globally. And partners have estimated that YouLend-backed SMBs experience a 26% uplift in sales in the six months following funding, contributing over $10 billion to GDP across YouLend’s core markets to date.
KEY QUOTES:
“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.”
– Anders Torpe Christoffersen, CFO at YouLend
“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.”
– Alex Curcio, Partner, Specialty Finance at Castlelake
