YouLend, Värde agree USD $225m US forward-flow deal

YouLend has struck a multi-year forward-flow partnership with investment firm Värde Partners, under which Värde could purchase up to USD $225 million in receivables originated by the embedded finance provider in the United States.

The arrangement adds funding capacity for YouLend's US lending activity, delivered through partnerships with eCommerce, payments and technology platforms.

YouLend originates receivables from financing provided to small and medium-sized businesses. Under the forward-flow structure, Värde has committed to buy pools of those receivables up to the agreed cap, providing capital for ongoing origination.

The deal comes as platforms and payment firms increase their use of embedded lending, where merchants access funding within the same software and services they use to run their businesses. The approach has drawn interest from lenders and investors as distribution shifts towards large digital platforms.

US expansion

The Värde facility will fund YouLend's US originations. YouLend has expanded its physical presence in the country, including a larger US headquarters in Atlanta.

Founded in 2016, YouLend is headquartered in the UK. It operates in more than 10 countries and has offices in the US and Germany. In January 2026, it opened an office in Berlin as part of an expansion across the European Union.

Platform partners include Amazon, eBay, Shopify, Etsy and UpWork. Partners also include payments and merchant services firms such as Worldline, Teya, SumUp, Tide and Dojo.

Through these relationships, merchants apply for and receive funding within partner platforms. YouLend describes its product as flexible capital for small and medium-sized businesses, delivered through a digital process integrated into partner tools.

To date, YouLend has provided funding to more than 370,000 businesses globally. The company has cited growth across its core markets as a driver for expanding its funding sources.

Forward-flow funding

Forward-flow facilities have become a common structure for fintech lenders that originate large volumes of small business or consumer assets. The model links capital supply to origination and can reduce the need for lenders to hold receivables on the balance sheet for extended periods.

For investors, buying receivables through a forward-flow agreement offers exposure to cash flows from the underlying financing assets. Structures vary by eligibility criteria, pricing and risk protections, though neither firm disclosed those details.

Värde invests in credit and credit-related assets across private and public markets. Founded in 1993, it has invested more than USD $100 billion across strategies and currently manages USD $17 billion in assets, according to the firm.

Its focus areas include real estate, asset-based finance and corporate credit. Värde has also financed fintech payment processing platforms in the past.

Small business demand

Small businesses remain a large segment of the US economy and a key focus for lenders, banks and fintech providers. YouLend cited historical US economic data showing that small and medium-sized businesses have accounted for between 43.5% and 50.7% of US gross domestic product since the late 1990s. It also cited figures showing SMEs have historically made up 62.7% of total net job creation in the country.

Competition has intensified as payment processors and commerce platforms look for new revenue streams and deeper merchant relationships. Embedded lending can tie financing decisions to payment data and trading history held by platforms, though underwriting approaches vary widely across providers.

Against that backdrop, YouLend framed the Värde partnership as a step towards scaling its US business and meeting demand from platform partners.

"Securing this facility is a significant step in scaling our U.S. platform," said Gaurav Maheshwari, Head of Capital Markets at YouLend. "Värde's deep experience in U.S. asset-backed credit and speciality finance makes them a strong partner as we continue to invest in our U.S. capabilities and meet growing merchant demand in this core market."

Värde described the agreement as the start of a longer-term relationship and pointed to YouLend's positioning in the sector.

"Värde is pleased to support YouLend's efforts to expand its capital base in the U.S., and we look forward to fostering a long-term partnership as YouLend continues to scale its footprint globally. This was an attractive partnership for us, particularly as YouLend operates in a market we know well, having ourselves financed numerous fintech payment processing platforms over the years," said Nikhil Gupta, Managing Director at Värde Partners.

The forward-flow facility sets a funding limit of up to USD $225 million in receivables, with purchases linked to assets originated by YouLend in the United States over the multi-year term.