Embedded Finance Provider YouLend To Extend Over €50m Of Financing to Spanish SMEs As SME Funding Demand Grows

In the context of tightening conditions and deteriorating access to finance, embedded finance provider YouLend expects to hit a new milestone to provide over €50m in finance to Spanish small and medium-sized enterprises (SMEs) in 2024. This is much-needed financing for Spain SMEs at a time when 86% of businesses experienced increased interest rates, and another 18% faced tighter collateral requirements for bank financing.

According to recent data, just more than one in four Spanish companies plan to implement embedded finance services by 2024 to facilitate cash flow support for their customers and provide them with the finance to stockpile inventory and expand growth opportunities. YouLend has revealed that the hospitality sector leads the highest demand for embedded financing, closely followed by e-commerce, food delivery platforms, and payment service providers.

YouLend has been able to sustain growth and maintain its competitive rates after securing a recent private securitisation capital injection from J.P. Morgan and Castlelake, L.P. The deal enables YouLend to extend more than €4.5 billion in additional revenue-based financing to European SMEs.

Ariam Rodríguez Pou, Country Head for Spain at YouLend, comments: “This financing milestone emphasises YouLend’s expansion in Spain and our commitment to continually invest in the platform and serve our customers in the region.

“At the core of our mission lies a dedication to providing businesses with financial support whenever and wherever required. We remain steadfast in collaborating with our strategic partners in Spain to offer fast, accessible, and equitable financial solutions, empowering businesses to thrive.”

Earlier this year YouLend teamed up with Glovo and Just Eat, both leading Spanish technology companies, to extend financing to the Spanish restaurant and hospitality sector. With the partnership, Glovo and Just Eat’s restaurant partners can apply for funding from €1,000 to €1 million, depending on their monthly sales volumes, through their existing business accounts.

Notably, Spanish SMEs supported by YouLend have reported a remarkable 15% increase in sales within six months of receiving funding, and have seen a 14% increase in headcount.

Profile of the Spanish company using embedded finance

In Spain, millennial entrepreneurs, typically aged between 30 and 42 years old, are increasingly turning to integrated embedded finance offered through their trusted platforms to fuel the growth of their businesses. This demographic is spread across more than 200 cities and towns nationwide, with notable concentrations in major urban centres such as Madrid, Barcelona, Valencia, and Seville, among others.

YouLend boasts an 85-90% application approval rate in Spain, offering equitable financing to business leaders. The company has revealed that 27% of the small businesses Youlend finances in Spain are female-led.

The average loan size in Spain stands at €10,000, with the hospitality sector leading the highest demand for embedded financing, closely followed by e-commerce, home delivery platforms, and payment service providers.

Spanish businesses with a minimum of three months in operation and €1,000 in monthly point-of-sale revenue are eligible to apply for YouLend financing solutions. Once approved, businesses repay the financing through a small percentage of their future sales, ensuring flexibility and protection during slower periods.