YouLend and Plaid Partnership Boosts SME Financing Approval Rates to 90% Across Europe

YouLend, the leading global embedded financing platform, and Plaid, a data network that enables consumers to connect their bank accounts to more than 8,000 apps and services, have revealed in their latest whitepaper that their partnership has boosted SME lending approval rates to 90% with modern, automated underwriting that utilises direct-from-source financial data through Open Banking. This is well above the 64% average for the UK in 2022 and above the previous government-assisted rate of 80% in 2021.

Across the world, there is a considerable SME bank-financing gap. In the Eurozone, the funding gap is up to €400 billion, despite most (70%) SMEs depending on banks for their external financing. This leaves thousands of businesses without another viable option for capital.

The strategic partnership between YouLend and Plaid is a major development in reshaping the SME lending landscape across Europe. YouLend’s tech-driven approach enables businesses to access credit three times faster by leveraging direct-from-source financial data. In the past, businesses with limited access to data from conventional sources may not be granted approval for financing. Today, YouLend customers can have their creditworthiness evaluated by modern underwriting that factors in alternative income streams to present fast, flexible, and affordable financing solutions.

Furthermore, with Plaid’s seamless integration, businesses are offered 20% lower prices on average, making financing more affordable than ever before.

Andy Quach, Head of Commercial at YouLend, comments: “YouLend’s partnership with Plaid has enabled us to deliver a streamlined customer experience and expand access to flexible financing amongst small-to-medium businesses that are typically under-served by traditional credit institutions. The real-time data we receive from Plaid results in applications being completed 3x faster and more businesses receiving funding.”

YouLend’s platform now provides an effective solution to the persistent challenges many SMEs face in accessing vital working capital. Small and medium-sized businesses can access funds on the same day, ensuring they can quickly seize growth opportunities.

Zak Lambert, Europe Head of Product at Plaid, said: “We’re delighted with the results that YouLend has been able to achieve by using Plaid. We’ve been partners for over 3 years and while YouLend continues to raise the bar for what it means to deliver a great customer experience, we’ve never been more excited about what the future holds for YouLend and their customers.”