YouLend Secures $1 Billion Funding Facility with Castlelake to Expand US SMB Lending
YouLend, the leading global financial platform, announced today the formation of a new three-year financing facility managed by Castlelake, a global investment firm specializing in private asset-backed lending.
The deal enables YouLend to significantly expand its lending capacity in the US, with the potential to extend more than $1 billion in revenue-based financing to small and medium-sized businesses (SMBs) over the next three years.
To date, YouLend has financed more than 200,000 SMBs worldwide. Castlelake’s previous investments have helped YouLend deliver more than £1.3 billion in SMB funding across the UK and Europe.
This new financing facility strengthens YouLend’s US investor base and enhances its ability to provide fast and cost-effective financing solutions to more businesses.
“The United States is very important to us. We are very excited to accelerate the site’s growth through this facility through Castlelake,” said Anders Torpe Christoffersen, CFO at YouLend. “It allows us to improve our platform as we want to offer the best terms to our partners and their sellers. By increasing the volume of capital and adding more diversity to our investors, we believe we can better help small and medium-sized businesses access the capital they need to grow.”
The deal builds on the long-standing partnership between YouLend and Castlelake, which already includes several locations. In 2023, funds managed by Castlelake provided a subordinated debt to support YouLend’s private equity operation in the UK.
The new US deal will enable YouLend to expand its footprint in the country, giving more SMBs faster access to financing options.
YouLend has expanded rapidly in the US in recent years, partnering with platforms such as Etsy, FreshBooks, and Paysafe to deliver complementary financing solutions for SMBs. With a 90% approval rate and fast time to market, YouLend has already supported thousands of SMBs across the country.
The announcement follows YouLend celebrating a milestone, having funded 200,000 SMBs worldwide. YouLend partners estimate that YouLend-funded businesses experience an average 26% increase in sales within six months of receiving funding, contributing more than $10 billion to GDP in all of YouLend’s main markets to date.
