Yoco secures $100m credit facility to boost SME working capital access
What happened
Yoco secured a $100 million credit facility from Victory Park Capital to expand working capital access for small businesses using its platform. This funding will support Yoco Capital, a merchant funding product that offers cash advances based on live sales across in-person and online payments. Advances range from R2,000 to R1.5m and are repaid through deductions from merchants' daily takings.
From bizcommunity.com
Why it matters
The facility allows Yoco to extend cash advances to more of the businesses that use its services. The funding also gives Yoco greater control over the financing it offers merchants, including pricing and risk management.
From bizcommunity.com
Who's involved
- SMESmall businesses receiving cash advances and working capital.
- South AfricaThe country where Yoco operates and provides services to SMEs.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- SMESpeculative
Small businesses might benefit from improved credit availability, which could ease structural financing constraints.
- South AfricaSpeculative
South Africa could see improved credit availability for small businesses, potentially easing structural financing constraints.