GoCardless increases access to capital for small businesses

GoCardless is a global bank payment company that serves nearly 100,000 businesses, processing over USD 130 billion in payments annually in 30+ countries. It simplifies recurring and one-off payments without high fees and uses data insights to increase payment success, reduce fraud, and connect with over 2,500 banks for quicker decision-making.

The introduction of capital powered by Pipe follows a pilot programme between the two companies, which resulted in GBP 13.3 million being advanced to 844 GoCardless merchants in nine months. This funding has enabled these businesses to invest in their growth, including upgrading equipment, expanding services, increasing marketing efforts, and strengthening their teams, without facing the obstacles typically associated with traditional funding.

SMBs account for about 60% of employment in the UK

Eligible GoCardless customers can take advantage of swift and easily accessible financing directly through the GoCardless platform. Due to Pipe’s capability to provide cash advances without requiring personal guarantees or credit checks, businesses can obtain capital in as little as one to two business days. This method is especially important for micro-businesses and enterprises owned by ethnic minorities, many of which may not have the necessary business history or credit scores for conventional financing. With small and medium-sized businesses (SMBs) making up approximately 60% of employment in the UK, Pipe’s solution has the potential to safeguard jobs while also contributing to economic growth.

GoCardless representatives reported that over half of small businesses in the UK face problems with late payments, which significantly impacts their cash flow. For more than a decade, the company has helped its customers improve cash flow by ensuring timely payments. With the introduction of capital powered by Pipe, the firm is taking a step further by offering Pipe’s fast and accessible financing directly within the platform. This will provide merchants with an additional opportunity to increase their finances, ultimately creating more chances for improvement.