How will SMBs Benefit from Adyen’s Pairing with Fresha?

Adyen, the global financial technology platform of choice for leading businesses, has launched Fresha Capital in partnership with Fresha, a market place platform for the beauty, wellness and self-care industry. 

The new offering targets small and medium businesses (SMBs) in the beauty and wellness sector and is currently live in the US, UK, Australia, Canada, Netherlands, Finland and Sweden.

To date, the partnership has resulted in over US$5.5m in loans issued to small and medium businesses. This move underscores Fresha’s strategy to utilise embedded finance to move beyond payments and provide interconnected financial services.

By circulating value within its platform, Fresha aims to strengthen its financial product ecosystem.

The launch allows SMBs to access working capital quickly and seamlessly to fund their growth.

Accelerating capital access for global beauty platforms

Adyen Capital is part of a robust set of embedded finance products which allow platforms to offer core financial services directly within their ecosystem. The solution is designed specifically for platform users who rely on instant liquidity to manage operations.

Users can view pre-approved offers and request financing in seconds with funding accessible within hours or the same business day. Loan offers range from US$500 to US$50,000 and are pre-approved based entirely on sales performance.

Repayment is automatically adjusted as a fixed percentage of daily sales ranging from 1% to 15%. This means businesses repay more when they earn more and less when they make less. The loan term is up to nine months and there are no fees for early or late repayment.

Hemmo Bosscher, SVP Global Head of Platforms & Financial Services at Adyen, says: “Our relationship with Fresha shows how embedded payments can be a catalyst for strategic change. 

“Fresha partnered with us to embed payments directly into their platform, now with embedded lending, they'll be introducing another new revenue stream and deepening relationships with their customers across several key markets.”

Strategic value for wellness platforms

The partnership allowed the rollout of Fresha Capital in just weeks across seven global markets. Providing instant and flexible funding options makes the platform an indispensable partner for its users.

Adyen takes on all lending and credit risk while platforms can go live with the product in hours using pre-built components. 80% of businesses who accept a Capital offer from Adyden return to take a second loan, the company claims.

Pawel Iwanow, Chief Payments Officer at Fresha, notes: “Our partnership with Adyen allowed us to roll out Fresha Capital in just weeks, scaling fast across seven global markets. 

“With over £4m (US$5.4m) already issued, it’s clear that access to funding is often the primary barrier for beauty and wellness SMBs. 

“If a vital piece of salon equipment breaks on a Friday before a peak weekend, we can now authorise a loan in seconds, saving the day for our partners and unlocking growth they would have otherwise postponed.”

Impact on small business operations

The solution supports industry needs such as purchasing new equipment or hiring staff ahead of peak seasons.

Access to capital remains a significant hurdle for many independent service providers in the wellness space.

Several small businesses such as Himalayan Salt Therapy and The Usual Lash state the benefits of having access to immediate loans. 

Adyen continues to focus on its single platform approach to simplify complex financial processes for its partners.