GoCardless Offers Direct Access Capital Financing for Small Businesses in Partnership With Pipe

Bank payment company, GoCardless, has teamed up with Pipe, the fintech delivering embedded financial solutions through software and payments partners, to launch a new financing offering for its customers.

By partnering with Pipe, GoCardless is offering direct access to capital financing for small business customers. Eligible GoCardless customers can now utilise this easy-to-access financing within the GoCardless platform.

Pipe delivers cash advances without requiring personal guarantees or credit checks – meaning businesses can access capital in as little as one business day. This speed could prove particularly crucial for a number of 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 per cent of employment in the UK, Pipe’s offering has the potential to protect livelihoods in addition to growing the wider economy.

“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,” explained Jolawn Victor, chief growth officer at GoCardless. “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.”

The launch follows a successful pilot programme between the two companies which saw £13.3million advanced to 844 GoCardless merchants in just nine months. This capital enabled these businesses to invest in growth by upgrading equipment, expanding services, boosting marketing, and strengthening their team – without the hurdles of traditional funding.

Luke Voiles, CEO at Pipe, also added: “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 capital, directly within a platform they know and trust.”

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