YouLend business finance: products, terms and eligibility

YouLend is a London-based provider of revenue-based finance for small and medium-sized businesses. The UK entity is YouLend Limited, company number 12576377, with its registered office at 90 High Holborn, London. Companies House shows the company was incorporated in April 2020. YouLend’s own site traces the business to 2016 and describes it as part of Banking Circle’s ecosystem of financial services. Its site has pages for partner platforms and for brokers who introduce businesses.

YouLend offers merchant financing, a form of revenue-based finance, of up to £2 million. Its Capital page names three variants: Working Capital, a Flexible Finance Line (a pre-approved line that merchants can draw from more than once, paying only for what they use) and Fixed Payments (a set funding amount with set repayments).

YouLend describes its headline figures as an indication. The offer and full terms come from an application.

YouLend publishes very little eligibility detail. It says it funds “all types of small and medium-sized businesses” and that all revenue types are considered.

The pages we checked do not state which legal forms are eligible, a minimum trading time, a minimum turnover or level of card takings, whether a personal guarantee is needed, or any excluded sectors. Ask for these in writing before you apply.

You repay revenue-based finance as a share of your sales, not as a fixed monthly amount. YouLend agrees a fixed fee and payment plan with you upfront, then automatically receives a percentage of every sale until the funding and the fee are paid. It charges no interest. Because payments rise and fall with your sales, the time it takes to repay varies. YouLend does not publish how early repayment is treated, so check whether the fixed fee changes if you repay sooner.

YouLend states that if a third party introduced you, it may pay them a commission, typically a percentage of the fixed fee under your financing.

YouLend’s site states that “YouLend Limited is a Payment Institution authorised by the Financial Conduct Authority (FCA FRN: 947287) under the Payment Services Regulations 2017 (SI 2017/752) for the provision of payment services in the United Kingdom.” It also states that “YouLend’s merchant financing is not regulated by the Financial Conduct Authority or the Danish Financial Supervisory Authority.” For a business, that means the authorisation covers the payment services used to collect repayments, not the financing agreement itself. Most finance for limited companies is likewise outside FCA-regulated consumer credit.

The main alternatives are another revenue-based provider or a loan with scheduled repayments. Repaying from sales depends on steady sales volumes, and a business that wants a fixed term and a published interest rate will find neither in YouLend’s published terms.

• Liberis also provides revenue-based finance repaid as a percentage of sales for a fixed fee.
• iwoca offers unsecured business loans repaid in set monthly amounts.

See every profile in business lenders compared, and read our guide on how to compare business loan lenders. For government-backed options, see our guide to the Growth Guarantee Scheme, which lists where to find the British Business Bank’s accredited lenders.

Capzy is a credit broker, not a lender, and gets paid by the lender. With one application your business can compare options across lenders, including revenue-based finance and term loans, side by side. Any offer is subject to status and lender criteria. You can check your funding options online.