Pipe, a fintech company partnering with software platforms to deliver embedded financial solutions for SMEs, is now partnering with bank payment company GoCardless to reshape capital access for UK businesses.
Through a new partnership, GoCardless will make a capital offering from Pipe available on its platform, providing simple and seamless capital access for its UK customer base.
The news comes after the successful completion of a pilot programme with GoCardless in the UK after several months. The full product is expected to launch in 2025. The two entities have now agreed to formalise their partnership to bring Pipe’s customer-friendly capital solutions to the broader UK market.
“Our partnership with GoCardless in the UK market marks a significant step forward in our mission to empower small businesses worldwide with the financing and services they need to grow and prosper,” said Luke Voiles, CEO of Pipe. “By combining Pipe’s customer-friendly solution with GoCardless’s extensive reach in the UK market, we’re revolutionising how small businesses access capital and providing them with the financial tools they need to thrive in today’s dynamic economy.”
Pipe’s solution requires no credit check and its flexible top-ups provide similar benefits to a line of credit, and the streamlined user experience results in higher sign-up conversion rates. This approach is particularly crucial for micro-businesses and minority-owned businesses, many of which lack the business history or credit scores required by traditional lenders.
This collaboration comes shortly after the launch of Pipe’s embedded capital offering in the United States in May.
Improving access to capital
UK SMEs have a range of capital financing needs from growing their business to covering cash flow gaps caused by late payments (a staggering 52 per cent experience late payments) and it’s unsurprising that one in six are also looking for financing.
By embedding capital directly into the applications that SMEs use daily to run their business, Pipe aims to make it easier to access funding. This enables businesses to secure working capital in minutes based on their performance rather than going through the traditional lengthy and arduous underwriting process. With pre-approval rates well above ninety per cent, Pipe eliminates a common friction point often experienced with other lenders, who may show pre-qualified offers only to disqualify applicants later.
“We’re excited to work with Pipe to roll out their capital offering to our UK customer base,” said Jolawn Victor, chief growth officer at GoCardless. “Their expertise and support helped us implement a pilot program quickly. Early results have exceeded expectations with almost £7million in capital being advanced to GoCardless customers.
“The strong conversion rates from the pilot show there is pent-up demand for this type of financing. We look forward to fully launching this embedded product next year, helping customers tap into new opportunities for growth and expansion while continuing to build their trust and loyalty in GoCardless.”
