YouLend Secures $1 Billion Financing Facility with Castlelake to Expand U.S. SMB Lending

YouLend, a global embedded financing platform, announced today the establishment of a new three-year financing facility with funds managed by Castlelake, a global alternative investment firm specializing in asset-based private credit.

This agreement enables YouLend to significantly expand its lending capacity in the U.S., with the potential to extend over $1 billion in revenue-based financings to small and medium-sized businesses (SMBs) over the next three years.

To date, YouLend has funded more than 200,000 SMBs worldwide. Castlelake’s prior financing investments have helped YouLend deliver over $1.3 billion in SMB financing across the UK and Europe.

This new financing facility strengthens YouLend’s U.S. investor base and enhances its ability to offer fast and affordable financing solutions to more businesses.

“The United States is a critical priority for us. We’re thrilled to accelerate origination growth through this facility with Castlelake,” says Anders Torpe Christoffersen, CFO at YouLend. “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.”

This deal builds on a long-standing partnership between YouLend and Castlelake, which has already spanned several geographies. In 2023, funds managed by Castlelake provided subordinated debt to support YouLend’s private securitization transaction in the UK.

The new U.S. agreement will enable YouLend to grow its originations in the country, offering more SMBs quick access to financing options.

YouLend has rapidly expanded in the U.S. in recent years, forging partnerships with platforms such as Etsy, FreshBooks, and Paysafe to deliver tailored financing solutions for SMBs. With a 90% approval rate and quick time-to-market, YouLend has already supported thousands of SMBs across the country.

This announcement follows YouLend’s celebration of a major milestone, having funded 200,000 SMBs globally. YouLend’s partners estimate that businesses funded by YouLend experience an average 26% uplift in sales within six months of receiving funding, contributing over $10 billion to GDP across YouLend’s core markets to date.

This article, "YouLend Secures $1 Billion Financing Facility with Castlelake to Expand U.S. SMB Lending" was first published on Small Business Trends