Yoco secures $100 million credit facility to scale merchant advances
The South African payments company said the facility from Victory Park Capital will support Yoco Capital, its embedded-finance offering for merchants.
South African payments company Yoco announced November 9 that it secured a $100 million credit facility from Victory Park Capital to scale Yoco Capital, its merchant-financing business.
Yoco Capital provides merchant cash advances to businesses using Yoco’s payments ecosystem. The company said the facility will help it expand financing to merchants, with advances repaid through deductions linked to card sales.
Sales-linked repayment can adapt collections to a merchant’s trading activity, but it does not eliminate the cost of financing or the risk that sales fall short. Merchants should compare the total repayment amount, deduction formula, fees and consequences of closing or changing their payment account.
The $100 million figure is the announced credit facility, not a grant, equity investment or amount necessarily advanced immediately to merchants. Actual availability and terms depend on underwriting and the facility’s conditions.