YouLend and Dojo Hit £2bn Milestone to Close UK SME Funding Gap

Quick Summary

The YouLend and Dojo partnership has provided over £2 billion in SME funding to 30,000+ UK businesses. By embedding flexible capital directly into payment platforms, the collaboration addresses a multi-billion pound credit gap, offering revenue-based repayments that adapt to real-time merchant performance and seasonal fluctuations.

How Does Embedded Finance Solve the SME Funding Gap?

Traditional banking often fails small businesses due to rigid approval processes and slow decision-making. Here is how YouLend and Dojo solve SME funding challenges for UK merchants. By utilizing real-time transaction data, the partnership allows businesses to access capital in as little as 24 hours without the friction of traditional bank loans. This model is particularly effective for the hospitality and retail sectors where cash flow can be volatile.

• Revenue-based repayments flex automatically with daily sales.
• High-speed approvals occur every 20 minutes on average.
• Embedded integration removes the need for third-party lender applications.

What Results Has the YouLend and Dojo Partnership Delivered?

The partnership has demonstrated significant merchant loyalty, with over 1,000 businesses renewing their funding ten or more times. This high retention rate is a clear indicator of the SME funding demand for flexible, non-dilutive capital. Furthermore, the data shows that providing access to capital can reduce merchant churn by up to 48%, as businesses are more likely to remain with a payment provider that supports their growth and stability.

"Our long-standing partnership with Dojo is a true testament to how embedded finance can deliver real value for a payments platform and its merchants," said Francisco Rubistein, VP of Growth, YouLend. "Merchants who access funding through Dojo renew 83% of the time - demonstrating genuine demand for this type of financing. We're also seeing that business funding can reduce merchant churn by up to 48%, because when businesses access capital through a platform they already trust, they're more likely to stay, spend, and grow."

Why Are Small Businesses Moving Away From Traditional Bank Loans?

With the UK SME funding gap estimated between £1.6 billion and £4.1 billion annually, traditional lenders are increasingly viewed as too disconnected from modern business operations. Small business owners, such as Nigel Blow of Shappen Stores, highlight the personal touch and speed of alternative finance as key differentiators. For seasonal businesses, the ability to bridge quiet periods caused by external factors like weather or footfall drops is essential for long-term survival.

"The funding from Dojo has been invaluable to us," states Nigel Blow, owner of Shappen Stores. "We've consistently used it to expand our business, get a decision very quickly, and the personal touch is a massive thing that you simply cannot get with a traditional lender."

FF NEWS TAKE:

This £2bn milestone proves that embedded finance is no longer a niche alternative; it is becoming the primary lifeline for SME funding in the UK. By doubling their funding volume in just 15 months, YouLend and Dojo have shown that data-driven lending scales faster and more effectively than legacy banking. This partnership moves the needle by proving that integrated financial services are the most powerful tool for reducing merchant churn and driving real-world economic growth.