How does a Lopay Cash Advance work?
Lopay works with YouLend Limited to offer cash advances to merchants using Lopay.
YouLend Limited is authorised and regulated by the Financial Conduct Authority (FCA) as a Payment Institution to provide payment services within the UK under firm reference number 947287. Find out more about YouLend here.
How much funding can I get?
The longer you've been trading through Lopay and the higher your monthly revenue, the larger your cash advance offer will be. Typically you will be offered up to two times your monthly card turnover.
You can apply for a Cash Advance from day one if you can provide trading data from elsewhere. To be eligible, you will need to provide 3 months of historical trading data showing a minimum of £1500 card turnover per month.
Once you have submitted your application, YouLend will conduct a credit check and consider factors besides your Lopay trading history. The review process typically takes 1-3 business days, and you'll be notified of the decision via both the Lopay app and email. Lopay does not have any control over YouLend's final decision.
How much will a cash advance cost?
With a cash advance you won't pay interest. You will only be charged a single fixed fee, so you know up front exactly what you will repay. All terms will be clearly set out in your Lopay app and you choose the size of the advance that suits you. You will pay back the funding through a fixed percentage of your daily sales.
How will a cash advance be repaid?
If you receive a cash advance it will be repaid over an agreed period via deductions from the payments you take through Lopay. However if you're earnings are lower than expected and deductions from your Lopay transactions are insufficient, YouLend will get in touch with you directly about getting back on track.
What is the maximum repayment period?
The maximum repayment period available is one year, typically to be repaid within 6-9 months.
How do I apply for a cash advance?
You can apply for a Cash Advance at any point in the Lopay app:
Click the banner on the home page of the Lopay app and follow the steps to complete the application form within the Lopay app. Or, go to Settings via the 3 lines in the top right of your app and then select the blue 'Need some capital?' banner under financing.
Your application will be rejected unless you provide 3 months of historical trading data showing at least £1500 card turnover per month.
How long does it take to receive my cash advance?
After your application is approved and you've signed the agreement, YouLend will process your payout. This typically takes 1-3 business days. You'll receive notifications through both the Lopay app and email once the funds have been transferred. If you don't receive your funds within 3 business days after approval, please contact [email protected] for assistance.
Can I borrow more?
Yes! You're typically eligible for a renewal once you've repaid 60% of your current advance, however other criteria also apply so you will be notified in the app and via email when you are eligible.
Please note that borrowing additional funds still requires the standard application process, but the approval rate is typically higher.
Can I make a one-off payment to pay down my advance early?
Yes, you can always make one-off payments free of charge if you would like to. However you don't have to, most merchants prefer the flexibility of simply repaying in accordance with their fixed repayment percentage at no extra cost.
How can I track my repayments?
You can view the amount owed and the amount repaid at any point via your Lopay app. You will also be able to see whether our partner, YouLend, deems your repayments to be on-track or off-track. This status is based up YouLend's expected repayment period for your cash advance. YouLend may contact you directly if you are 'off-track' and if they are worried about the progress of your repayments.
Please note, you can also view your repayment status via your YouLend dashboard - however please allow 72hrs for your YouLend dashboard to update.
What if I'm going away for a few weeks?
If your repayments are slower than YouLend expected, they may contact you directly to ask for more information. You can then explain if you are on holiday or taking a short break from trading.
What if I refund a transaction?
If you have a cash advance, a small percentage of each of your transactions will be deducted to gradually repay your cash advance. When a transaction is subsequently refunded, the cash advance repayment is not automatically refunded - instead it effectively goes towards repaying your cash advance early. If this is an issue, please contact [email protected] and we can help arrange a refund from YouLend.
What if I want to move my cash advance to another provider?
If you’re looking to transfer your cash advance—for example, from Dojo to Lopay—all you need to do is get in touch with YouLend. They’ll provide you with an "Opening Account Letter" and guide you through updating your payout account. You can reach YouLend at +44 (0) 203 827 2870 or [email protected].
For any further questions or help, please email us at [email protected].