Bank payments fintech GoCardless has teamed up with embedded finance firm Pipe to offer small businesses direct access to capital financing.
Eligible customers can now access financing from within the GoCardless platform. Pipe will deliver cash advances without the need for personal guarantees or credit checks, meaning that businesses can access capital in as little as one to two business days.
GoCardless says this approach is particularly crucial for micro-businesses and ethnic minority-owned businesses, many of which may lack the business history or credit scores required in traditional financing.
The launch of capital powered by Pipe follows a successful pilot programme between the two companies which saw £13.3 million advanced to 844 GoCardless merchants in nine months.
Jolawn Victor, chief growth officer, GoCardless, says: "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.
"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."