Paycorp has expanded its embedded business funding service to the UK, targeting SMEs. Operating under Recap Global, the service uses transaction data to offer pre-approved funding in real-time.
This move addresses the high demand for flexible funding among UK SMEs, which make up 61% of employment. The service eliminates traditional credit checks and lengthy applications, providing fast, transparent funding.
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Marina Mouka
- July 17, 2024
- 2 minutes
Paycorp, a global leader in payment solutions, has announced the expansion of its embedded, pre-approved business funding service into the United Kingdom. This strategic move aims to meet the growing demand for flexible funding solutions among small and medium-sized enterprises (SMEs) in the UK.
Operating under the brand Recap Global, this service leverages transaction data from ATMs, point-of-sale, and e-commerce platforms to offer pre-approved funding in real-time.
SMEs are the backbone of the UK economy, accounting for 61% of all employment. According to the British Business Bank, nearly half (48%) of all UK SMEs sought external finance in 2023, underscoring the high demand for innovative funding solutions.
Recap Global aims to address this need by providing fast, flexible funding without the traditional hurdles of credit checks and lengthy application processes.
Jonathan Field, Managing Director of Recap Global, emphasised the significance of this service: “We are delighted to partner with payment platforms to enhance their merchant offering and increase loyalty with turnover-based business funding. Eligible customers can get truly pre-approved, frictionless funding at the click of a button, eliminating rejection anxiety and empowering businesses to capitalise on growth opportunities even in challenging economic circumstances.”
Recap Global stands out in the market by leveraging line-by-line transaction data from various payment partners. This data is processed through an advanced credit risk engine, which can assess a merchant and return a funding offer in under two minutes. This eliminates the need for further underwriting requirements such as credit checks on the owner or management accounts.
Merchants receive a customised and secure offer URL, prompting them to follow a simple four-step process to receive pre-approved funding in under two hours. Fees are transparent and determined upfront, with repayments made as a percentage of daily sales. This ensures flexible payment terms, particularly beneficial during slower business periods.
Steven Kark, Co-founder and CEO of Paycorp, highlighted the broader implications of this expansion: “Expanding our embedded business funding offering to the UK is a significant milestone for Paycorp. It will enable us to accelerate our global growth while providing a service that British businesses and their payment providers can all benefit from. We have evolved from a South African ATM business into an international payments provider offering everything from cash management to crypto, and I’m proud that we are continuing to shape the future of payments with embedded business funding.”