Pipe, a fintech company specializing in delivering embedded financial solutions for SMEs, has announced its partnership with GoCardless, a leading bank payment company. The collaboration aims to reshape capital access for businesses in the UK, enabling them to secure quick and simple financing via the GoCardless platform.
Revolutionizing Capital Access for UK SMEs
The partnership between Pipe and GoCardless will provide customer-friendly capital solutions to UK businesses, offering a seamless experience for those in need of financing. After several months of running a successful pilot program, the two companies have decided to formalize their partnership to extend Pipe’s innovative solutions to the broader UK market.
Luke Voiles, CEO of Pipe, expressed the company’s enthusiasm:
“Our partnership with GoCardless in the UK market marks a significant step forward in our mission to empower small businesses worldwide with the financing and services they need to grow and prosper. By combining Pipe’s customer-friendly solution with GoCardless’s extensive reach in the UK market, we’re revolutionizing how small businesses access capital.”
Meeting the Financing Needs of UK SMEs
The partnership arrives at a crucial time for UK SMEs, many of which face challenges due to late payments. In fact, 52% of SMEs experience cash flow issues caused by late payments. This partnership will address this problem by allowing businesses to secure working capital in minutes based on their performance, without the need for lengthy and traditional underwriting processes.
With pre-approval rates above 90%, Pipe’s solutions eliminate the friction often encountered with traditional lenders, making it particularly valuable for micro-businesses and minority-owned businesses, which often struggle with access to financing due to limited business history or credit scores.
Pilot Program Exceeds Expectations
The pilot program has shown strong early results, with attach rates twice as high as benchmark figures and nearly £7 million in capital being advanced to GoCardless customers. The feedback has been overwhelmingly positive, and the program has achieved an impressive 88 Net Promoter Score.
Sam Brooksworth, Founder/CEO of Remoteli and a GoCardless customer, praised the partnership, stating:
“Everyone needs a financial partner in their corner to take your business to another level, and that’s what Pipe feels like. Rather than feeling like you’re owing somebody, Pipe makes you feel like it’s a partnership.”
Looking Ahead: Launching in 2025
Following the pilot’s success, the full product is expected to launch in 2025. Jolawn Victor, Chief Growth Officer of GoCardless, commented:
“We’re excited to work with Pipe to roll out their capital offering to our UK customer base. Early results have exceeded expectations with almost £7m in capital being advanced to GoCardless customers.”
With this partnership, Pipe and GoCardless are setting the stage to further support SMEs in the UK by providing them with quick, flexible, and reliable access to capital, empowering them to overcome cash flow challenges and pursue growth opportunities.
For more information, visit Pipe and GoCardless.