Planet & YouLend launch fast SME funding in Europe

Planet has partnered with YouLend to offer funding to small and medium-sized businesses in Europe, starting in seven markets.

The service will launch first in the UK, Ireland, the Netherlands, Belgium, France, Germany and Denmark. Planet's existing merchants will be able to access YouLend's digital funding service through the payments and property management software they already use.

The partnership adds business finance to the payments and operational software Planet already provides to merchants in hospitality, retail and travel. YouLend will handle underwriting, funding and servicing, while Planet will direct eligible merchants to the service.

Both companies are addressing a longstanding problem for smaller businesses: fast access to working capital. Conventional business lending can take weeks or months, and approval models do not always reflect seasonal trading patterns or the circumstances of companies with limited credit histories.

Under the new service, the application and assessment process is digital, with decisions possible within minutes or hours. Funding is typically available within 24 to 48 hours.

Repayments will be linked to a merchant's sales, and the total cost will be agreed and disclosed in advance. The structure is designed for businesses in sectors such as hospitality, travel and retail, where revenue can fluctuate during the year.

Funding access

YouLend says it has provided funding to more than 400,000 businesses across 10 markets since launching in 2017. Its model relies on current business performance data, an approach intended to widen access to finance for smaller operators that may be overlooked by more conventional credit assessments.

The partnership also reflects a broader shift in financial services, as payments groups and software platforms increasingly add lending and other financial products to existing merchant relationships. For providers, that can deepen customer ties. For merchants, it can create a route to funding through systems they already use.

London-based Planet provides payments, software and tax-free shopping services, and says it serves customers in more than 120 markets. The company has more than 2,500 employees across six continents.

YouLend works with eCommerce, payments and technology platforms including Amazon, eBay, Shopify, Etsy and Just Eat Takeaway.com. It operates in more than 10 countries.

Merchant channels

The companies plan to extend access to other European markets through Planet's customer channels. Under the agreement, YouLend will retain responsibility for funding decisions, pricing and terms.

Planet will not provide financial advice as part of the arrangement. Its role is to connect merchants that may qualify for funding with the embedded finance service within its existing commercial relationships.

For merchants, the appeal is likely to be speed and familiarity. Rather than approaching a separate lender, businesses can seek funding through the payments or software provider they already use to run parts of their operation.

That may be particularly relevant for smaller operators facing seasonal pressures, inventory purchases or short-term investment needs. In those circumstances, a funding decision made within hours rather than weeks can affect how quickly a business responds to demand.

Colin Close, Chief Commercial Officer at Planet, said the deal was designed to make funding easier to access when businesses need it.

"Businesses need quick, straightforward access to funding so they can act when opportunities arise," he said.

"By bringing YouLend's flexible finance into Planet's existing services, we can help customers invest in their businesses, manage seasonal pressures and grow with greater confidence."

Luuk Visschedijk, Head of Strategic Partnerships at YouLend, said the partnership would broaden the company's reach through an established merchant network.

"Partnering with Planet allows us to bring flexible funding to more merchants through the platforms and services they already use," he said.

"By combining Planet's established customer relationships and sector expertise with our data-led approach to funding, we can make access to working capital simpler and more convenient. It's a great example of how embedded finance can help SMEs access the financial tools they need, when they need them."