How GoCardless Partnered with Pipe to Offer SMB Financing
GoCardless, a global bank payment company that processes over US$130bn annually across more than 30 countries, has launched an embedded finance solution in partnership with Pipe, a fintech that delivers financial solutions through software and payments partners.
The integration enables eligible GoCardless merchants to access capital financing directly within the GoCardless platform.
The solution removes barriers typically associated with traditional business loans, such as personal guarantees and credit checks, allowing small businesses to receive funding in as little as one to two business days.
Addressing cash flow challenges
The capital solution aims to address a persistent issue for UK small businesses, where more than half suffer from late payments, according to GoCardless. This payment delay creates cash flow constraints that limit growth opportunities.
“More than half of small businesses suffer from late payments in the UK. This has a huge impact on cash flow, the lifeblood of any business,” says Jolawn Victor, Chief Growth Officer at GoCardless.
“For over a decade, we've helped our customers improve their cash flow by getting paid on time — and now with the launch of capital powered by Pipe, we can go a step further to offer Pipe's fast, easy-to-access financing directly within our platform.”
The solution could provide particular support to micro-businesses and ethnic minority owned enterprises that often lack the business history or credit scores required by traditional lenders.
With small and medium-sized businesses accounting for approximately 60% of UK employment, the companies suggest this capital access has potential to protect jobs while stimulating economic growth.
Pilot programme demonstrates demand
The formal launch follows a nine-month pilot programme between the two companies that advanced £13.3m (US$16.8m) to 844 GoCardless merchants.
Businesses used this capital for equipment upgrades, service expansion, marketing investments, and team growth.
The implementation represents another step in the growing embedded finance trend, where financial services are integrated directly into non-financial platforms that businesses already use for their operations.
This approach reduces friction in the financial services acquisition process.
Luke Voiles, CEO at Pipe, explains the rationale behind the partnership: “We've heard from small businesses how hard it is to secure working capital due to overly complex application processes, strict lending criteria and risk aversion from banks.
“Through our partnership with GoCardless, we can help businesses overcome these obstacles by making it fast and simple to access funding, directly within a platform they know and trust.”
Contextual financing
The GoCardless platform, which serves nearly 100,000 businesses from startups to established brands, facilitates the collection and sending of payments through direct debit, real-time payment systems, and open banking — a system that allows financial service providers to access customer banking data with permission to deliver new services.
“More than half of small businesses suffer from late payments in the UK. This has a huge impact on cash flow, the lifeblood of any business”
GoCardless leverages payment data and insights to improve payment success rates and reduce fraud.
With open banking connections to over 2,500 banks, the company helps customers make faster, more informed decisions about their financial operations.
Pipe, which makes capital and financial tools accessible to growing businesses through the software they use daily, designed its solution to scale across industries.
Its embedded approach allows business owners to access capital within familiar platforms rather than through separate applications.
The partnership aims to address these financing gaps through contextual, embedded financial services that meet businesses where they already operate.
Explore the latest edition of FinTech Magazine and be part of the conversation at our global conference series, FinTech LIVE.
Discover all our upcoming events and secure your tickets today.
FinTech Magazine is a BizClik brand