Paycorp, a global leader in payment solutions, has expanded its embedded, pre-approved business funding offering into the UK. Since March 2023, Paycorp’s Capital Express brand has provided business funding to ATM clients across South Africa. This is achieved in partnership with Retail Capital, a division of TymeBank, South Africa’s digital bank. Through this venture, Paycorp and Retail Capital have offered instant working capital based on historical ATM transaction data.
To meet growing UK demand, Paycorp has launched its embedded funding offering in the UK as Recap Global. This serves SMEs across all sectors, including wholesale and retail trade, restaurants and pubs, hotels, mechanics, and taxi firms.
Uniquely in the market, Recap Global leverages transaction data from various payment partners’ ATMs, point-of-sale, and eCommerce platforms to generate truly pre-approved funding in real time. By leveraging line-by-line transaction data, Recap’s credit risk engine assesses a merchant and returns a funding offer in two minutes. This is achieved without any further underwriting requirements, such as a credit check on the owner or management accounts or business bank statements.
Providing SMEs with access to working capital
By fully integrating into payment partners’ processes, its advanced credit risk engine combined with a seamless user experience ensures that small businesses across the UK have access to crucial working capital.
Merchants receive a customised and secure offer URL. This prompts them to follow a simple four-step process to receive pre-approved funding in under two hours. As a result this eliminate lengthy application processes and the fear of rejection.
Fees are transparent and determined upfront, with repayments made as a percentage of daily sales to ensure flexible payment terms. This means that during slower business periods, repayments are lower, therefore providing much needed flexibility in a turbulent and often uncertain economic environment.
Jonathan Field, Managing Director, Recap Global said, “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. This eliminates rejection anxiety and empowers businesses to capitalise on growth opportunities even in challenging economic circumstances.”
Steven Kark, Co-Founder and CEO, Paycorp adds, “Expanding our embedded business funding offering to the UK is a significant milestone for Paycorp. It will enable us to accelerate our global growth. At the same time providing a service that British businesses and their payment providers can all benefit from.
“We evolved from a South African ATM business into an international payments provider offering everything from cash management to crypto. I am proud that we are continuing to shape the future of payments with embedded business funding.”
Enterprise Times: What this means for businesses
Working capital remains the lifeblood of all businesses, particularly smaller and medium enterprises (SMEs). SMEs account for 61% of all employment in the UK. Consequently, it is critical that they have access to the support and funding they need to grow. According to research by the British Business Bank, 48% of all UK SMEs with employees sought external finance in 2023. This demonstrates the high demand for solutions like Paycorp’s embedded funding solution.
The solution sounds simple: Leveraging line-by-line transaction data, the credit risk engine assesses a merchant’s viability and returns a funding offer in under two minutes. All of these activities are achieved without any further underwriting requirements, such as a credit check on the owner. However, businesses operate in a world where they have to be vigilant to a range of security and cyber threats.
Paycorp have not provided any further information on the security precautions or railguards in place that support the solution. Can only assume that such safeguards are in place to avoid rogue actors attempting to make fraudulent revenues from this activity.
