Sometimes big dreams come with big price tags. Often, creative entrepreneurs find that in order to accomplish their goals, they need to make a big investment — in new equipment, a new space, or in materials to fill a big order. That’s why we’ve partnered with YouLend, a market leader in providing small business funding that’s simple to apply for and powerful in what it can do. Sellers in the US and UK can learn more about YouLend and start their application here.
YouLend provides funding for hundreds of thousands of small businesses annually. YouLend funding has empowered Etsy sellers to achieve a variety of business goals, whether that’s buying supplies in bulk to unlock lower prices, to peace of mind that they’ll be able to pay bills and employees on time. On average, Etsy sellers who've used YouLend for funding have seen their sales grow by 8.4% (that's 28% higher compared to shops without funding).* Plus, sellers continued to leverage funding with YouLend—80% of Etsy sellers renewed their cash advance at least once.**
Eligibility for YouLend funding is based on two criteria: (1) having three months of consistent sales and (2) selling on average $500 or more per month. This income doesn't just have to solely come from Etsy sales; YouLend will make their assessment based on all your sales activity across any platform you choose to sell on. YouLend currently supports many countries where Etsy sellers are based, including the US, the UK, and a selection of European countries coming in the future.
In this article, Etsy asked the team at YouLend to answer six frequently asked questions by small business owners interested in funding solutions to fuel their creativity.
Question: How does a YouLend cash advance work? How is it different from a loan?
Answer from YouLend: Simplicity and transparency are super important to YouLend which is one of the main differences between this type of funding and other options in the market like a bank loan.
- There are no complex application forms or piles of documents to pull together in order to get an offer. Just a five minute online application, with a dedicated team available on the phone or by email to talk you through every step.
- We’ll typically provide a decision within 24 hours and can often release funds the same day! The price of the funding is transparent and won’t change during the time you are using it.
- There are no interest charges or hidden fees to complicate your business accounting. There’s a one-time fixed fee that doesn't need to be paid up front; it's automatically added to the funding amount.
- Repayment of the funding is linked to the sales of your business, meaning if your sales go down, or even stop, then so do your repayments! This reduces the stress of having to pay a fixed loan repayment at the end of each month, even if things have slowed down for now. If you decide to stop selling completely and you’re unable to make repayments,, our team will work with you to create a revised repayment plan.
Question: As a seller, why might I consider a cash advance? What can I use it for?
Answer from YouLend: You can use this funding for absolutely anything business related. For example, we recently provided a cash advance to a family-run jewelry seller based out of Seattle looking to expand their product line into a new type of metalwork. This required new tools, new materials, and some time to get used to new processes. The seller used some of the funds to bridge the slowdown in sales and continue to support their family while bringing their new products to market. The new product line is selling at a significantly higher price point thanks in part to the materials and techniques the seller was able to incorporate.
Feedback from YouLend participants:
“As a business, I have overhead and employees. I needed to stock up for the Christmas season, and had just experienced a lot of expenses, which made it beneficial for me to have a cushion.”
– Michael from Alari Design Jewelry Studio
Q: What can I expect during the application process?
Answer from YouLend: We know that not everyone understands or feels comfortable delving into the world of finance. That’s why YouLend makes sure that the process is super simple, so you can make the best decision possible for your business.
It’s important to us that you feel empowered to explore what’s available without any commitment or impact on your credit score. Rest assured, YouLend applies a soft personal credit check, so even if your application is declined, it won't impact your credit. You can compare any offer from YouLend against other options you may have, or even just to know it's there, should you need it in the future.
We also understand that not everyone wants to do things through an app! That’s why we have a dedicated team of professionals in our offices around the world, ready to speak with you about your business. For more information about the application process and ways to get in touch, sellers in the US can learn more and apply here.
Q: What happens if my application is denied?
Answer from YouLend: When sellers apply for this funding, we have to check that it’s a good fit for your business. If you’re declined for funding, we’ll suggest a suitable timeline should you wish to apply again, which is typically three months.
To help with making your next application for funding a success, it's worth thinking about any outstanding debts that your business might have (for example, credit card debt or a bank loan), and the impact this might be having on your business and ability to repay. Ultimately, YouLend has to lend responsibly to small businesses by ensuring that any offer will support the business to grow, not to stifle growth.
Q: What would happen if I have changes to my repayment plan, like difficulty repaying or repaying ahead of schedule?
Answer from YouLend: We understand that running a small business can be tough, and sometimes unforeseen things happen that interrupt your sales, such as illness, a supplier letting you down or even extreme weather! That's specifically why this funding is only repaid when you are making sales, and there is plenty of flexibility built in from the start.
If it looks like your business is going to be interrupted for a longer period then we look to work with you to understand how best to support you to get back on your feet doing what you love. If you decide to stop selling completely and you’re unable to make repayments, our team will work with you to create a revised repayment plan.
The key thing for us is communication. Let us know what's happening and YouLend will work with you to resolve it.
Feedback from YouLend participants:
“I especially love the fact that payments towards the funding comes directly out of our sales. No sales that day, no payment for that day.”
– Suzie from Suzees Candle Company
Q: I already have taken funding with YouLend or another provider, will I still be eligible?
Answer from YouLend: Our team will always approach each application on a case by case basis so it's worth speaking to us directly to find out if we can support your business.
Sellers in the US can learn more and apply here
Note: This information is provided by YouLend and does not constitute financial advice. You’re responsible for any use of this information. Please consult an attorney or tax expert if you have any questions.
*Results are based on a sample of over 200 US sellers who received funding from YouLend between August 31, 2023 and March 1, 2024. Sale increases are not guaranteed and may vary over time.
**Between November 2023 and March 2024, 186 US Etsy Sellers out of 229 who repaid their initial advance have renewed their advance.
Words by Etsy Staff
