Teya Cash Advance: How Merchant Finance Works with YouLend

Teya Cash Advance: How Merchant Finance Works with YouLend

In January 2026, Teya launched Teya Cash Advance in partnership with YouLend, an FCA-authorised embedded finance platform. This product allows Teya merchants to access business funding based on their card processing history, without the documentation requirements of a traditional bank loan.

What Is a Merchant Cash Advance?

A Merchant Cash Advance (MCA) is not a loan. It is a purchase of a portion of your future card sales revenue. The key difference matters:

• A loan has fixed monthly repayments regardless of how much you earn.
• An MCA repayment is a percentage of your daily card sales. On busy days you repay more; on quiet days you repay less. There is no fixed payment schedule.

Because repayment flexes with your revenue, an MCA can be a useful tool for businesses with seasonal or variable income.

How the Teya Cash Advance Works

Teya Cash Advance is powered by YouLend and accessible directly through the Teya app. Eligible Teya merchants see an offer in their app based on their payment history.

Range: £1,000 to £2,000,000.

How much you receive: Determined by your average monthly card processing volume and trading history.

Repayment: A daily percentage deduction from your card sales, ranging from 5% to 20%. The deduction continues until the total advance plus the fixed factor cost is repaid.

Funding timeline: Once approved, funds can be in your account within 24 hours.

Application process: Pre-approved based on your Teya payment data. No lengthy paperwork in most cases. Open Banking is used to verify your bank account.

The Factor Rate

Unlike a loan with an annual interest rate, an MCA charges a factor rate. This is a multiplier applied to the amount you borrow.

Teya Cash Advance factor rates range from 1.10x to 1.35x. In practice:

• Borrow £10,000 at a 1.10x factor rate: total repayment is £11,000 (the £1,000 is the cost of finance)
• Borrow £10,000 at a 1.35x factor rate: total repayment is £13,500 (the £3,500 is the cost of finance)

There is no APR in the traditional sense because the repayment period is variable. A higher-volume month means you repay faster. A slower month means repayment takes longer, but you never owe more than the agreed total.

YouLend: The Platform Behind the Product

YouLend is an FCA-authorised embedded finance platform. Key facts as at April 2026:

• Over 370,000 businesses funded globally
• 90% approval rate for businesses applying via Open Banking
• More than £7 million accessed by UK Teya merchants through this partnership since its launch in January 2026
• 85% merchant renewal rate (merchants who access an advance and take another when they need it again)
• Factor rates 1.10x to 1.35x; daily repayment deduction 5% to 20% of card sales

Source: YouLend website (youlend.com) and Teya product release page (April 2026).

Eligibility Basics

To access Teya Cash Advance, you generally need:

• At least 6 months of trading on Teya
• Monthly card revenue of approximately £8,000 or more

Eligibility is determined by Teya and YouLend based on your payment data. If you do not yet meet the threshold, continue building your processing history and an offer may become available.

MCA vs Traditional Business Finance

The MCA route costs more per pound borrowed than a bank loan if you qualify for a bank loan. But for many SMEs, bank loan approval is difficult or slow. The MCA trades a higher factor rate for speed and accessibility.

Important Note

This article explains how the Teya Cash Advance product works. Whether it is right for your business depends on your specific circumstances, cash flow, and the alternatives available to you. Klipy is a payment processing ISC, not a financial adviser. Please speak to a qualified financial adviser or accountant before taking on any form of business finance.