GoCardless, the bank payment company, has launched capital powered by Pipe, to provide direct access to capital financing for its small business customers. The offer is in collaboration with Pipe, a fintech company delivering embedded financial solutions through software and payments partners.

Eligible GoCardless customers can now make use of fast, easy-to-access financing, all from within the GoCardless platform. Pipe’s ability to deliver cash advances without the need for personal guarantees or credit checks means that businesses can access capital in as little as one to two business days. This approach is particularly crucial for micro-businesses and ethnic minority owned businesses, many of which may lack the business history or credit scores required in traditional financing. With SMBs accounting for around 60% of employment in the UK, Pipe’s offering has the potential to protect livelihoods in addition to growing the wider economy.

The launch of capital powered by Pipe follows a successful pilot programme between the two companies which saw £13.3m advanced to 844 GoCardless merchants in just nine months. This capital has allowed these businesses to invest in growth – enabling them to upgrade equipment, expand services, boost marketing, and strengthen their team – all without the hurdles of traditional funding.

Jolawn Victor, Chief Growth Officer at GoCardless, said: “More than half of small businesses suffer from late payments in the UK. This has a huge impact on cash flow, the lifeblood of any business. For over a decade, we’ve helped our customers improve their cash flow by getting paid on time — and now with the launch of capital powered by Pipe, we can go a step further to offer Pipe’s fast, easy-to-access financing directly within our platform. This will provide merchants another way to strengthen their finances, ultimately giving them more opportunities to grow.”

Luke Voiles, CEO at Pipe, said: “We’ve heard from small businesses how hard it is to secure working capital due to overly complex application processes, strict lending criteria and risk aversion from banks. Through our partnership with GoCardless, we can help businesses overcome these obstacles by making it fast and simple to access funding, directly within a platform they know and trust.”