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Frequently asked questions

About YouLend

About YouLend?

YouLend is a Danish lending platform offering flexible and quick financing to Nordic and British small and medium sized enterprises. We want to provide our clients with a healthy alternative to traditional banking products. We do this by connecting borrowers and lenders directly cutting out the bank as a middle man which provides a cost-effective solution for both borrowers and lenders. This process is also known as peer-to-peer or P2P lending as well as marketplace lending.

YouLend ApS is authorized and regulated by the Danish Financial Supervision Agency (FSA number 21214). YouLend is registered in Denmark (company number 36895225) with its main offices at Njalsgade 23, DK-2300 Copenhagen S, Denmark and at 2 Kingdom Street, London, W2 6BD, United Kingdom.

What is YouLend's mission?

To cost efficiently relocate capital to more productive fields, building better businesses for tomorrow.

How do I apply?

  1. Log on to YouLend.com and create a company profile. Use the calculator to give an estimate of your card flow and volume.
  2. Choose the size of your cash advance and get your desired repayment sweep.
  3. Enter your company details and save your profile.
  4. The following stage will involve adding a few more business details as well as 6 months of payment gateway data for verification.

Is my data safe with YouLend?

Yes, data security means a great deal to us and forms part of the basis for our license. We encrypt all data received and generated (both in transport and rest) and our databases, programs and files are all backed up in a way that ensures minimum risk of loss. We do not rent or sell your information to anyone. Please read our Privacy Policy if you want to know more.

When are you open?

We are open for business 24 hours a day. Despite being an online business you are always welcome to contact us. We will answer emails and phone between 10:00 and 18:00 GMT.

Can I borrow money as a private person on the YouLend platform?

No, we only facilitate the provisioning of financing to businesses. We do not provide consumer financing.

Why aren’t you a bank?

The short answer is that we do not take any deposits as we are not the lender ourselves. We are merely a marketplace where potential borrowers meet lenders which enables funding of the potential borrowers on better terms than normally available from a bank. Our process is 100% online, we are open 24 hours a day and the credit assessment is algorithm based enabling us to be quick and flexible.

Who is YouLend backed by?

YouLend is backed by a select group of highly experienced private and institutional investors, including senior management profiles from Danish and UK financial institutions and large cap listed companies.

What is the background of peer-to-peer lending?

Structural changes in the global banking sector following the financial crisis in 2008 have driven an increasing need for a change of debt financing for corporates.

The institutional market has gradually been replacing bank financing for larger corporates through corporate bonds and syndicated loans. Direct investment in alternative asset classes, e.g., infrastructure and utilities, has replaced the typical bank project financing. Challenges achieving critical mass have historically restricted the change and disintermediation of lending to small and medium sized enterprises ("SMEs"). Over the recent years, however, P2P lending has increasingly replaced bank debt financing of SMEs.

In this description, P2P lending covers lending to unrelated entities or "peers" through an on-line platform without the use of traditional financial intermediaries. The P2P platform is a marketplace that matches potential lenders and potential borrowers directly, allowing the lenders to lend money to the borrower in return for interest payments/fees and a repayment of capital over time. The P2P platform acts as an information provider and does not itself take deposits from the lenders or provide lending capital to borrowers.

Borrow with YouLend

Which products do you have?

We provide two financing products: (1) YouLend Advances; and (2) Factoring Loans. A YouLend Advance, which is sometimes known as a merchant cash advance is a quick and flexible solution allowing Danish and British SMEs to get an advance of up to 300% of their monthly revenue. Factoring Loans are typically relevant for larger businesses who can improve their cash flows by converting their outstanding invoices into cash.

What is a YouLend Advance?

A YouLend Advance is a cash advance on future card revenue, not a traditional loan. We use your historic payment data to screen your eligibility. Once you have received the advance, you will repay a pre-determined percentage (%) of your card revenue to the lenders via YouLend on a weekly basis until the advance has been fully repaid. There are no fixed repayments. There is no interest on the advance, instead you are charged a discount on the advance which is added to the advanced amount that you have to repay.

Here is an example on how YouLend Advance works:

In this example, you receive an advance of GBP 19,000 and repay in total GBP 20,000 as your company grows. The extra GBP 1,000 is the total cost of the advance. You will be charged no interest. If your card revenue is GBP 20,000 per month and you sweep is 20%, you will repay on average GBP 4,000 a month. Under these assumptions, your YouLend Advance will be repaid in approximately five months. If your card revenues increases you will repay faster and if it decreases you will repay slower. There are of course differences from company to company but the process is always transparent, quick and with no hidden fees. This whole process is managed by YouLend, so you can focus on managing your business.

What is the difference between a normal loan and a YouLend Advance?

A YouLend Advance is a merchant cash advance of future card revenue, not a traditional loan. We sweep a percentage (%) of your card revenue until your advance is repaid. This means that you repay more when times are good and less when business is slower. Not like a traditional bank loan where there are fixed repayments or an uncommitted overdraft facility. Our philosophy is simple, we get paid when you get paid and that's why we want to see you grow. The YouLend Advance repayment model is best suited for companies that accept credit/debit card transactions, such as webshops and e-commerce platforms, but also businesses which accept invoices.

How big a YouLend Advance can my business get?

You can get a merchant cash advance (MCA) of up to 300% of your monthly revenue. Get a quote here.

What does a YouLend Advance cost?

There are no up-front costs or hidden fees associated with the advance. The pricing is a simple function of the size of the advance relative to your business, the sweep percentage (%) and a credit assessment of your business based on the YouLend algorithm. You will know exactly what the cost is up-front before signing up for the advance.

When do I have to pay back my YouLend Advance?

The advance is automatically and gradually repaid from your card revenue. You only have to pay when your business is making money. The sweep percentage (%) of your weekly revenue that is repaid is determined by you and fixed up-front so it suits your specific business needs. The entire process is managed by YouLend to make it a smooth, quick and hassle free experience.

What revenue sweep percentage (%) should I go for and why?

That is very much a question of individual preference and business model. You are the expert on your business. Typically, our clients go for a sweep percentage (%) between 20% and 40% of the card revenue and it is important to keep in mind that if you take too high a sweep percentage then your liquidity could get squeezed. The higher the sweep percentage the lower the discount/fee charged and vice versa.

Who are the lenders?

The lending capital providers are Danish and UK institutional investors and qualified investors. If you are interested in providing lending capital and are either institutional or an investor, please email investors@youlend.com

Who are the parties to a YouLend Advance?

The loan agreements will be executed directly between the lenders and borrowers. The agreement would remain in place and be unaffected in the unlikely event that YouLend was to fail or become insolvent.

What can I use the YouLend Advance proceeds for?

That is entirely up to you. Most of our clients use their advance to purchase more inventory in order to meet increasing demand. However, we also have clients who use the funds to invest in IT-systems, marketing, debt consolidation or leveraging supplier discounts.

Do I need a personal guarantee?

No, we do not require a personal guarantee from the business owner(s) or director(s). That means that we won’t try to take your house if your business can’t repay the advance.

What we do require is a contractual commitment to re-paying a pre-determined sweep percentage (%) of your weekly card sales. In many instances this sweep can be automated completely making life easier for you, however, that depends on your payment service provider.

Do I need to attend a physical meeting?

No, our application and credit assessment process is 100% online and there is no need for a physical meeting. You are always more than welcome to get in touch with us and we would love to get your feedback.

What is the tax treatment of your products?

Our products are treated as normal loans from a tax perspective. However, as you know, tax is not an easy topic and circumstances may vary from case to case. We recommend you to contact the relevant tax authorities and/or seek professional advice, should you be in doubt.

Can my business make a one-off payment to pay down a YouLend Advance?

Yes, you can pay down your advance at any point in time. There are no extra fees, costs or penalties associated with early repayment.

Who will see my information?

We will not share your information with anyone else other than the lender(s) unless required to do so by the authorities. The lenders will only have access to headline information about your business and revenue and not to any know-your-client information provided regarding ownership and management. Please read our Privacy Policy if you want to know more.

What is a payment gateway?

A payment gateway provider lets you process your payment transactions. Whether it is instore, through debit/credit cards or online through a webshop or other e-commerce platforms. A payment gateway authorizes the payment between the merchant and customer. Popular payment gateways include PayPal, Worldpay, First Data, Stripe and Square.

Your borrower account

How can I access my account?

You can access your YouLend account at by clicking on the 'Log in' button in the top bar of the website as well as by clicking here. In your account, there is a borrower dashboard where you can review the status of your YouLend Advance, including how much you have repaid, and request a new YouLend Advance.

How do I create a new password?

Click on the Log in button on the top of the platform and click 'Don’t remember your password?'.

How do I close my account?

We would hate to see you go but once you have repaid your YouLend Advance you are free to close your account at any time by contacting us.

How do I find the legal stuff on use of the website and your use of my data?

You can read our Terms of Use here, our Privacy Policy here and our Cookie Policy here.

There is a lot of information in these documents and we encourage you to have a look. One point that we want to flag is that we are allowed to contact you to follow up on a potential request for a YouLend Advance to make sure you get the best understanding possible of the product. Don’t worry we won’t bury you in spam.

Lenders

How do I become a lender?

We are not open to retail lending capital providers at this stage but you are always welcome to sign up on our waiting list or contact us if you are an institutional investor interested in our platform: investors@youlend.com

What is my protection as a lender?

Although we are not open to retail lending capital providers at this stage we want to make it very clear that lending using the Platform is not covered by any deposit guarantee schemes, including but not limited to Indskydergarantifonden in Denmark and the Deposit Guarantee Scheme in the UK. Therefore, a lender’s funds may be at risk if a borrower fail to repay a loan. YouLend strongly recommends that the lender seeks independent financial and tax advice when considering whether to lend funds through the platform.

Complaints

How do I make a complaint?

In the event, you have a complaint, we will make every effort to rectify the problem as soon as practicably possible. Please write to us making clear the details regarding your complaint. The complaint should be sent by email to: info@youlend.com Please mark the email 'Complaint' in the subject line.

We will endeavour to acknowledge any complaint within two business days of receiving it. Further, we will endeavour to provide a response to the complaint within ten business says of receiving it.

If, having received our response, you are still dissatisfied, a lender or borrower can escalate the complaint to our Chief Executive Officer and/or the Chief Financial Officer who will investigate the complaint personally and provide a final response within ten business days.