UK SMEs Embrace Embedded Financing to Address Capital Needs Ahead of Black Friday and Christmas, YouLend Data Reveals
YouLend, the global leader in embedded financing, has revealed a significant rise in UK SMEs leveraging embedded financing solutions to secure vital capital ahead of Black Friday and the Christmas season. Data from YouLend indicates a 30% increase in financing applications leading up to Black Friday 2024, with e-commerce platforms driving much of this demand. This trend highlights the growing preference for flexible, point-of-need financing among small businesses.
As the holiday season approaches, UK SMEs face mounting challenges, including inventory shortages, labor constraints, and rising costs. These hurdles often limit their ability to capitalize on the year-end sales boom, even as 72% of consumers plan to support small businesses during the holidays. E-commerce businesses, in particular, experience heightened pressure from soaring demand and operational complexities.
In 2023, UK shoppers spent an estimated £13.3 billion during Black Friday weekend, a 7.3% year-over-year increase. Yet, many small businesses were unable to fully benefit due to insufficient capital to meet the seasonal surge in demand.
Embedded financing is proving to be a game-changer for SMEs. Platforms offering integrated financing solutions enable businesses to quickly access the funds needed to stock inventory, ramp up marketing, and manage cash flow. This support is critical for navigating seasonal challenges such as increased returns, refunds, and peak order volumes.
“The strong demand from SMEs during Black Friday has driven our partners to prioritize timely and flexible financing solutions tailored to the needs of their customers,” said Jakob Pethick, Chief Commercial Officer at YouLend. “Embedded finance empowers small businesses to manage working capital, fill inventory gaps, and seize growth opportunities during this critical sales period.”
YouLend’s embedded financing platform offers seamless access to funding through partnerships with e-commerce and payments platforms. Businesses can apply for up to £2 million in just a few clicks, with personalized offers provided within 24 hours. The revenue-based repayment model allows SMEs to repay a fixed percentage of future sales, ensuring flexibility during fluctuating revenue cycles.
Powered by AI, YouLend’s decisioning model evaluates businesses holistically, extending financing to SMEs often overlooked by traditional lenders. This approach has resulted in a 90% approval rate for YouLend applicants, far exceeding the 64% UK average for SME lending.
As SMEs gear up for the busiest shopping period of the year, embedded financing continues to emerge as a vital tool, equipping small businesses to thrive in the competitive holiday market.