South African fintech company Yoco has secured a US$100 million credit facility from Victory Park Capital to expand access to working capital for small and independent businesses.
Announced on 9 November, the financing will support Yoco Capital, which provides cash advances to merchants using the company’s payments platform. Yoco says the facility will help it extend funding to more businesses across retail, hospitality and services.
More funding for everyday business needs
The facility gives Yoco greater control over financing offered to its merchants, building on a business that has previously relied on lending partners.
According to Bloomberg, the transaction marks Yoco’s first entry into the debt market. The company has already facilitated R6.5 billion in merchant funding through partners.
Advances range from R2,000 to R1.5 million and can help business owners purchase stock, hire employees, upgrade equipment or open additional branches.
Sales data shapes funding offers
Yoco Capital uses merchants’ payment activity to assess eligibility. According to the company, qualifying businesses receive pre-approved offers in the Yoco app, without needing to complete a separate application or provide collateral.
“Financing was the one layer we didn’t fully control. This facility changes that,” said Yoco chief executive Carsten Holtkemeyer in the announcement.
Repayments are collected automatically as an agreed percentage of daily sales. Yoco’s guidance states that no repayment is deducted on days when a business makes no sales, allowing collections to move with trading activity.
Addressing South Africa’s financing gap
The expansion comes against a substantial shortfall in funding available to smaller businesses. Bloomberg’s reporting cites a Finfind Access to Finance report estimating South Africa’s small-business financing gap at approximately R350 billion.
Yoco, which began operating in 2015, has expanded from card-payment devices into a broader digital-commerce platform serving around 200,000 merchants. The new facility strengthens its ability to combine payment services with access to business capital.
Yoco says it will continue working with other funding providers where appropriate, while using the Victory Park facility to expand its own financing capacity.
