New data from global embedded finance leader YouLend reveals that small and medium-sized businesses (SMBs) that received financing through its e-commerce, payments and technology partners grew sales by up to 25-50%, on average, in the six months following funding. With over 300,000 businesses funded worldwide, YouLend demonstrates how fast, flexible capital can be a powerful driver of growth for entrepreneurs.

The data highlights that small businesses that successfully received funding were able to pursue key growth activities such as hiring staff, purchasing inventory, and investing in marketing campaigns. These actions fuelled a powerful growth flywheel effect, contributing to higher sales and long-term business success. The findings are based on thousands of funding recipients across the UK, Europe, and the US.

A breakdown of how business owners utilise funding to drive growth:

• 31% of recipients used the financing to support cash flow 

• 25% for purchasing new inventory

• 23% for upgrading their premises

• 11% to cover staff wages in the short-term, and 

• 10% for marketing

"Our data shows a clear trend: SMB owners are using YouLend financing to unlock real growth opportunities," said Francisco Rubistein Bosch, VP of Growth at YouLend. "The strong results we’re seeing are not only encouraging for small businesses, but also for our strategic partners who have seen up to 80% uplift in merchant retention and 40% increase in customer lifetime value by offering embedded financing solutions. The increasing demand highlights the critical role that fast, flexible funding plays in helping businesses succeed."

With YouLend, access to capital can be seamlessly embedded within a platform’s existing ecosystem and applications can be completed in just a few clicks, with same-day offers presented to invest in any business purpose. To date, YouLend has seen a consistent 85% renewal rate for merchants globally. 

A small business owner, Billie of Chelsea Green Valet, shares how this type of financing, offered through her payment-service provider, has been transformative for her business: ”Cash flow is everything - you need it to buy products, pay rent, and keep things running smoothly. Through my payment-service provider, I was able to access instant funding from YouLend and use it to purchase stock for my business.”

Billie remarks, “Repayments are flexible, frictionless, and deducted as a small percentage of daily transactions, making it effortless to manage. Every business should have access to this type of funding.”

As more SMBs turn to flexible financing to fuel their next stage of growth, YouLend’s Widening Access to Capital report reveals that this momentum is also opening doors for many under-represented businesses. With YouLend, nearly 2x more female-owned businesses are likely to apply for financing compared to the industry average, and for each business funded, one new job is created. At large, embedded finance is not just accelerating individual business growth but also delivering tangible value for the wider economy.