Yoco has reportedly secured a $100 million credit facility to expand financing for small businesses already taking payments through its platform. Innovation Village reported on November 9 that Victory Park Capital Advisors provided the facility.
The South African company sells card machines and provides online payments and point-of-sale software for retailers, cafes and salons. Yoco says more than 250,000 businesses took payments through its platform over the past year; its Capital service has funded more than 40,000 businesses.
Yoco introduced Capital in 2018. Its cash advances use merchants’ trading histories to generate offers, with repayments collected as a share of daily sales. According to its September 28 product guide, there is no fixed repayment term and no deduction on days without sales; borrowers pay capital and administration fees.
Merchants need at least six months of Yoco transaction history to be considered. An offer still depends on lending partners’ risk assessments and can be declined during final checks, including for credit-report or business-registration issues.