YouLend Revenue Based Finance

If you are looking at YouLend’s revenue based finance as a way to smooth cash flow or fund growth, you are not alone. YouLend works with payment providers and platforms to offer fast, data-driven funding that you repay as a small slice of future card sales rather than fixed monthly instalments. In this guide we break down how YouLend’s model works, what it really costs, and how it compares to other options you can access via Funding Agent.

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YouLend revenue based finance at a glance

YouLend’s core product is a form of revenue based finance (often described as a merchant cash advance) offered via partners and platforms. You receive a cash advance now and repay it automatically as a fixed percentage of your daily card or online sales, plus a single flat fee agreed upfront. Here is a quick snapshot of how it typically looks for UK SMEs.

You can read more about the product directly on YouLend’s merchant funding page and via their official website.

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How YouLend's Revenue Based Finance actually works in practice

Unlike a traditional term loan, YouLend does not generally lend to you directly via its own website in isolation. Instead, it partners with payment providers, e‑commerce platforms and marketplaces. If your business processes card or online payments through one of those partners, you may see a pre‑approved or pre‑qualified offer for funding inside that platform, powered by YouLend.

The application journey is usually light-touch. You start from your payment provider or platform portal and are redirected to a branded YouLend journey. Most of the data YouLend needs (such as card takings and historical sales) is pulled automatically via API or open banking connections. You may be asked a handful of questions about your business, owners and funding purpose, and to e‑sign a credit agreement and personal guarantee.

YouLend’s underwriting is heavily data-driven. Rather than focusing primarily on filed accounts, it looks at live and historic cash flow, card volumes and sales patterns. That is how they can often show you multiple offer sizes in minutes, frequently without asking you to upload bank statements or management accounts. As a result, approval rates for eligible merchants can be higher than with some traditional lenders, although you still need to pass basic credit and fraud checks.

Once you accept an offer, the advance is paid to your business bank account. Repayments then start automatically. Each day, your payment provider splits out an agreed percentage of your card or online revenue and sends it to YouLend. If you have a quieter month, you repay less; if sales spike, the balance clears faster. There is usually also a minimum repayment requirement to ensure the balance is paid off within a reasonable timeframe.

For example, suppose YouLend advances £30,000 with a 12% flat fee, so the total to repay is £33,600. If your card receipts average £40,000 per month and your agreed repayment percentage is 10%, YouLend would collect around £4,000 per month. At that pace, you would clear the balance in just over 8 months. If trading slows and you only take £25,000 one month, the repayment that month would fall to about £2,500, and your overall repayment period would lengthen.

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Rates, fees and what this Revenue Based Finance really costs

YouLend markets its funding on the basis of a single, transparent fee rather than an interest rate. In practice, you are quoted a total amount to repay at the outset, so you know exactly how many pounds will be collected from your future sales if those sales track your current performance. No ongoing interest accrues on a daily or monthly basis, and there are typically no additional arrangement or early repayment fees.

The flat fee itself is risk-based and depends on factors such as your sector, trading history, card turnover and credit profile. For some stronger businesses, the fee might be in the low‑teens as a percentage of the amount advanced; for higher-risk profiles or longer expected repayment periods, the fee can be significantly higher. Because the repayment period is not fixed, the “real” APR equivalent will vary and is not always straightforward to compare against a standard business loan.

To put this into context, imagine you take £50,000 with a 15% fee, so you must repay £57,500. If your daily card repayments mean you clear the balance in 10 months, you have effectively paid £7,500 for 10 months’ use of £50,000. That is flexible and predictable, but it will usually work out more expensive than a comparable secured bank loan or a highly priced but shorter‑term overdraft. On the other hand, you avoid compounding interest and can repay faster without penalty if sales outperform expectations.

You should also watch out for any broker or platform fees that may sit outside YouLend’s pricing, as those can add to your total cost of funds. At Funding Agent, we focus on clearly explaining total costs and can help you compare any YouLend offer you receive with more traditional Business Loans from banks, specialist lenders and fintechs.

If you want to stress-test affordability, tools like a Business Loan Calculator or Working Capital Loan Calculator can help you see how different repayment profiles would impact cash flow alongside YouLend’s daily revenue‑share model.

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Eligibility, who YouLend is a good fit for

YouLend is generally aimed at established, card‑taking SMEs rather than pre‑revenue start‑ups. While specific criteria vary by partner and over time, there are some common themes in who is likely to qualify.

• Trading history: Typically at least 3–6 months of trading, with a proven pattern of card or online payments flowing through a partner platform.
• Turnover: A minimum monthly card/online turnover (for example several thousand pounds per month) is usually required for the numbers to work.
• Business type: Common sectors include retail, hospitality, e‑commerce, personal services and other consumer‑facing businesses that accept card or online payments all year round. Some higher‑risk sectors may be excluded.
• Business structure: UK limited companies are typical, though some platforms also support sole traders and partnerships depending on risk.
• Credit profile: More emphasis is placed on cash flow than on perfect credit scores, but adverse credit, CCJs, arrears or previous insolvency will still be a concern.
• Owner checks: Directors or owners will usually need to pass identity, fraud and affordability checks and sign a personal guarantee.

If your business is very young, does not take card or online payments, or experiences extremely lumpy and unpredictable revenues, YouLend may either not be available or may not be the best fit. In those situations, a more traditional working capital facility such as an Unsecured Working Capital Loan might be a better match.

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Pros, cons and when YouLend is a good idea

Revenue based finance is neither “good” nor “bad” in isolation; whether YouLend is right for you depends on what you are optimising for: speed, flexibility, or lowest total cost.

Pros

• Fast and convenient: If you are eligible, you can often see offers within minutes and receive funds within a couple of days, all online.
• Repay as you earn: Repayments flex with your sales, which can be kinder to cash flow during quieter months compared with a fixed monthly direct debit.
• No compounding interest: You agree one fixed fee at the start, so you know the total amount you will repay, subject to sales volumes.
• Repeat funding: If you perform well and repay on time, you can often access top‑ups once a portion of the existing advance has been cleared.

Cons

• Can be expensive: When translated into an annualised rate, the flat fee can be higher than a bank loan or some unsecured term loans.
• Daily cash flow impact: A percentage of your takings is skimmed off every day, which can put pressure on cash flow if margins are thin.
• Eligibility limitations: You must have sufficient card/online turnover through a compatible partner. Cash‑only or invoice‑heavy businesses may be excluded.
• Personal guarantees and minimum payments: Even though the product is “unsecured”, you are likely to sign a personal guarantee and may be required to make minimum payments if sales drop significantly.

Best for

• Busy retailers and hospitality venues who see steady card takings and want to refurbish premises, add new stock or invest in marketing without committing to rigid repayments.
• Growing e‑commerce brands who need fast working capital for inventory and ad spend and are confident that future sales will stay strong enough to clear the advance quickly.
• SMEs with limited assets or thin credit files who struggle to secure traditional bank loans but have strong card revenue flowing through a YouLend partner.

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Real world examples of how SMEs use this Revenue Based Finance

Every business is different, but these scenarios are typical of how UK SMEs use YouLend‑style funding in practice.

Example 1: Restaurant refurb and fit‑out
A popular high‑street restaurant taking around £80,000 per month in card payments takes a £60,000 YouLend advance to fund a refurb and new outdoor seating. With a 14% fee, the total to repay is £68,400. The provider collects 10% of card sales each day. In busy summer months the balance reduces quickly; in quieter winter months, repayments fall, helping the business avoid cash flow crunches.

Example 2: E‑commerce stock and marketing push
An online fashion retailer with strong seasonal demand takes a £35,000 advance just before peak season to buy extra stock and ramp up paid social advertising. The fee is 12%, so the total repayment is £39,200. Because Q4 sales outperform expectations, the revenue share clears the balance in 7 months rather than the planned 12, without any early repayment fee.

Example 3: Salon smoothing cash flow and tax bills
A beauty salon sees lumpy cash flow around VAT and self‑assessment deadlines. It takes a £20,000 advance with a 10% fee to cover tax, minor refurb costs and new equipment. The provider collects 8% of card takings. When the salon has quieter weeks, repayments reduce automatically, giving the owner more breathing room compared to a fixed‑repayment loan.

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How Funding Agent can help you compare YouLend against other lenders

YouLend is one of several revenue based finance providers in the UK market, and their model will suit some SMEs better than others. The challenge for most business owners is working out how a flat‑fee, sales‑linked product really compares to term loans, lines of credit, overdrafts and other working capital solutions on a like‑for‑like basis.

Funding Agent is an independent broker that helps UK SMEs compare options across a panel of banks, fintech lenders and specialist working capital providers. We can help you understand any YouLend offer you have received, sense‑check the total cost, and line it up against alternatives such as unsecured term loans, revolving facilities and invoice finance that might work out cheaper or better aligned to your cash flow.

If you want to see where YouLend sits in the wider market first, you can also read our in‑depth Youlend Reviews page, which looks at the lender as a whole.

If you want to see how YouLend stacks up, compare business finance options with Funding Agent before you sign.

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Alternatives to YouLend's Revenue Based Finance

Even if YouLend’s offer looks attractive, it is sensible to check whether other forms of funding could deliver a lower total cost or a more predictable repayment profile. Some of the main alternatives UK SMEs consider are:

• Unsecured working capital loans: A straightforward term loan with fixed monthly repayments can sometimes work out cheaper overall, especially if your credit profile is strong. You can explore this route via an Unsecured Working Capital Loan.
• General business loans: For larger projects, acquisitions or fit‑outs, traditional Business Loans from banks and non‑bank lenders may offer longer terms and lower rates in return for stricter affordability checks.
• Invoice finance and factoring: If most of your income is from invoicing other businesses on terms, funding tied to invoices may be more suitable than card‑linked revenue based finance.
• Overdrafts and revolving credit: Flexible lines of credit that you can dip in and out of are sometimes a better match for short‑term cash bumps than a lump‑sum advance.
• Checking affordability with calculators: Before deciding, you can model different loan sizes and terms using tools like a Business Loan Calculator or Working Capital Loan Calculator to see how fixed repayments compare with a daily revenue share.

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