Plaid and YouLend Partnership Accelerates SMB Financing in Europe

Published 6 months ago

A strategic collaboration between open banking network, Plaid and embedded finance platform, YouLend is enhancing the access of capital for small- to medium-sized businesses (SMBs) across Europe. Their unified efforts have created a financing procedure that is approximately three times quicker compared to traditional lenders, boasting a 90% approval rate.

Addressing Credit Availability in SMBs

At a time when only 12% of SMBs are satisfied with the current credit availability and over half rate it as poor or very poor, the Plaid-YouLend partnership is proving critical. Notably, their streamlined application process offers higher success rates and lower costs, even enabling funds to be disbursed on the same day.

In contrast, traditional or legacy lenders often place an undue dependence on conventional data sources, leading to high rejection rates, inaccurate data, and inflated rates.

Streamlining SMB Financing with Modern Tech

The integration of YouLend and Plaid offers a more streamlined financing approach. It delivers real-time financial data and cash flow insights, eliminating the need for time-consuming bank statement verification. Modern, automated underwriting now considers alternative income streams, offering fast, flexible, and affordable financing solutions.

To ensure this accelerated financing reaches SMBs, Plaid and YouLend have collaborated with various digital platforms, including eCommerce retailers, marketplaces, payment service providers, and other digital service platforms. These platforms have the advantage of being trusted partners of SMBs, collecting vast transactional data, and offering convenience and consolidation when integrating financial services.

Enhancing Funding Experience

Beyond accelerating the funding process, platforms that collaborate with a trusted embedded financing partner like YouLend can offer funding products that better cater to their customer needs than traditional lenders.

Earlier this year, a collaboration between YouLend and Amazon was formed to aid small businesses in the United Kingdom in obtaining financing. This partnership offers merchants cash advances linked to their sales, enabling repayment as they earn revenue.