Yoco secures $100 million credit facility for merchant advances
Yoco has secured a $100 million credit facility from Victory Park Capital to expand merchant financing, using payments data to assess small businesses.
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giftdetect· the right gift in minutesYoco has secured a $100 million credit facility from Victory Park Capital, giving the payments company fresh capital to expand its merchant cash advance business.
The company says it will use the funding to scale lending to small businesses that already process card payments through its platform. Rather than relying on traditional credit files, Yoco assesses merchants using their payments data, which shows how much they sell and how consistently.
Why payments data matters
That approach is central to the deal. By underwriting advances against transaction history it can see directly, Yoco gains greater control over credit risk, the company says. Small merchants often struggle to access formal financing, and a lender that observes their daily sales has a clearer view of their ability to repay than one working from limited documentation.
A dedicated credit line also means Yoco can fund advances at larger scale without depending solely on its own balance sheet.
What it means
For merchants, the facility could translate into wider access to working capital from a provider they already use for payments. For Yoco, lending adds a revenue stream beyond payment processing and deepens its relationship with the businesses it serves.
The move reflects a broader pattern among fintech firms, which are pairing payments infrastructure with credit products built on the data they hold. Further details on terms and rollout were not part of the announcement material available to us.
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