Following this announcement, Pipe’s Embedded Finance solution is set to be made available through the GoCardless platform in order to boost capital access for small businesses in the region of the UK.
In addition, both financial institutions are expected to continue focusing on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
Throughout this initiative, by combining Pipe’s customer-friendly solution with GoCardless’ extensive reach in the UK market, the deal aims to optimise the manner in which businesses access capital, as well as provide them with the financial tools they need in order to develop the current dynamic economy.
At the same time, this partnership follows the launch of Pipe’s embedded capital offering in the US. GoCardless collaborated with Pipe after a comprehensive market evaluation, as the latter’s solution was developed in order to provide its fast, easy-to-access financing, which requests no credit checks. Furthermore, its flexible top-ups provide similar benefits to a line of credit, as well as a streamlined and secure user experience that results in higher sign-up conversion rates. This approach is particularly important for micro-businesses and minority-owned firms, many of which lack the history or credit scores needed by traditional lenders.
By embedding capital directly into the applications that SMEs use daily to run their business, Pipe will make the process of accessing funding faster and simpler. This is set to allow businesses to secure working capital in minutes based on their performance, rather than going through the overall traditional underwriting procedure. Pipe will also eliminate a common friction point often experienced with other lenders, who may show pre-qualified offers only to disqualify applicants later.
According to the official press release, the full product is expected to launch in 2025.
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