Complete Guide

How YouLend Works: Complete Guide 2025

Step-by-step explanation of YouLend's merchant cash advance process. From application to approval to repayment - everything explained in simple terms for your business growth.

How YouLend Works in 60 Seconds

1

You connect

Your e-commerce platform or payment processor (10 minutes)

2

YouLend analyzes

Your sales data automatically (instant)

3

You receive offer

Amount, factor rate, daily repayment % (24-48 hours)

4

You accept

And e-sign agreement (5 minutes)

5

Funds arrive

In your business account (24 hours)

6

Automatic repayment

They take agreed % of daily sales until repaid

Detailed Process

1

Application (10 Minutes)

Visit youlend.com and click "Get Started". You'll need:

Business details (company number, trading address)
Director/owner information (name, DOB, address)
Connection to sales platform (Shopify, Amazon, payment processor)

Open Banking Connection: Instead of uploading bank statements, you authorize YouLend to securely read your transaction data via open banking API. Faster and more secure than manual upload.

2

Automated Analysis (Instant)

YouLend's algorithm analyzes your sales data:

Revenue trend: Growing, stable, or declining?
Consistency: Predictable sales or highly variable?
Seasonality: Do you have clear seasonal patterns?
Returns/refunds: High return rate = higher risk
Account age: How long you have been trading

Based on this analysis, their algorithm determines:

  • • Maximum funding amount you qualify for
  • • Factor rate (1.10-1.35x depending on risk)
  • • Recommended daily repayment percentage
3

Offer Received (24-48 Hours)

You'll receive an offer showing:

Advance amount:

e.g., £50,000

Factor rate:

e.g., 1.25x

Total repayment:

e.g., £62,500

Daily deduction:

e.g., 15% of card sales

Estimated term:

e.g., 8-10 months based on current sales

4

Acceptance (5 Minutes)

  • Review full agreement (read carefully!)
  • Check factor rate, repayment %, and any conditions
  • E-sign the contract online
  • Authorize repayment deduction from your processor
5

Funding (24 Hours)

Once agreement signed, funds typically arrive within 24 hours. Money goes directly to your business bank account via faster payment. No checks or delays.

6

Automatic Repayment (Daily)

Each day, your payment processor settles card sales. Before settlement, YouLend deducts agreed percentage (e.g., 15%). You receive remaining 85% as normal. Process repeats daily until total amount repaid.

Real Repayment Example

Monday card sales: £1,000

YouLend takes: £150 (15%)

You get: £850

Tuesday card sales: £1,500

YouLend takes: £225 (15%)

You get: £1,275

Wednesday card sales: £500

YouLend takes: £75 (15%)

You get: £425

Notice: Repayment flexes with your sales automatically. Busy day = higher repayment. Quiet day = lower repayment. This protects your cash flow during seasonal dips.

What Happens if Sales Drop?

Scenario: Your sales drop 50% during quiet period

Normal sales

£2,000/day

YouLend takes: £300 (15%)

Sales drop to

£1,000/day

YouLend takes: £150 (15%)

Your repayment automatically halves. This protects your cash flow. Compare to traditional loan where you'd still owe full £300/day regardless of sales - risking default.

Compare YouLend vs Alternatives

See YouLend, iwoca, 365 Finance rates side-by-side

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Frequently Asked Questions

Can I pay off YouLend early?
+

Yes, no penalty. If you repay the full outstanding balance early, you save on the remaining period. Some businesses get windfall (large sale, tax refund) and pay off early to minimize total cost.

What if I have no sales one day?
+

Zero sales = zero repayment that day. Repayment automatically pauses. Resumes next day when sales occur. This is the key advantage over fixed monthly loan payments.

Can YouLend take more than agreed percentage?
+

No. Percentage is fixed in contract. If contract says 15%, they take exactly 15% - not 15.1%, not 16%. This is regulated and monitored.

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