Pipe Partners GoCardless to Enhance Access to Capital for UK SMEs

Pipe, a fintech company partnering with software platforms to deliver embedded financial solutions for SMEs, and bank payment company GoCardless today announced a partnership to reshape capital access for UK businesses. 

Under the partnership, Pipe’s customer-friendly capital offering will be accessible via the GoCardless platform, providing simple and seamless capital access for its UK customer base.

Over the past several months, Pipe successfully conducted a pilot program with GoCardless in the UK, and the two companies have agreed to formalize their partnership to bring Pipe’s customer-friendly capital solutions to the broader UK market.

“Our partnership with GoCardless in the UK market marks a significant step forward in our mission to empower small businesses worldwide with the financing and services they need to grow and prosper,” said Luke Voiles, CEO of Pipe. 

“By combining Pipe’s customer-friendly solution with GoCardless’s extensive reach in the UK market, we’re revolutionizing how small businesses access capital and providing them with the financial tools they need to thrive in today’s dynamic economy.”

This collaboration follows the launch of Pipe’s embedded capital offering in the United States in May. GoCardless partnered with Pipe after a comprehensive market evaluation, citing Pipe’s impressive pre-approval rate for merchants and its ability to offer capital without personal guarantees. 

Pipe’s solution stands out in the market for its fast, easy-to-access financing, which requires no credit checks. Its flexible top-ups provide similar benefits to a line of credit, and the streamlined user experience results in higher sign-up conversion rates. 

This approach is particularly crucial for micro-businesses and minority-owned businesses, many of which lack the business history or credit scores required by traditional lenders.

UK SMEs have a range of capital financing needs from growing their business to covering cash flow gaps caused by late payments (a staggering 52% experience late payments) and it’s unsurprising that 1 in 6 are looking for financing.

By embedding capital directly into the applications that SMEs use daily to run their business, Pipe makes it fast and simple to access funding. This allows businesses to secure working capital in minutes based on their performance rather than going through the traditional lengthy and arduous underwriting process. 

With pre-approval rates well above ninety percent, Pipe eliminates a common friction point often experienced with other lenders, who may show pre-qualified offers only to disqualify applicants later.

Sam Brooksworth, GoCardless customer and founder/CEO of Remoteli, shared his experience: “I was thrilled to receive an offer from Pipe through the GoCardless platform because GoCardless is a brand we trust.” He goes on to describe Pipe’s impact on Remoteli, “Everyone needs a financial partner in their corner to take your business to another level, and that’s what Pipe feels like. Rather than feeling like you’re owing somebody, Pipe makes you feel like it’s a partnership.”

Early results from the pilot program have exceeded expectations. Pipe saw attach rates twice as high as benchmark figures. The full product is expected to launch in 2025.

“We’re excited to work with Pipe to roll out their capital offering to our UK customer base,” said Jolawn Victor, Chief Growth Officer, GoCardless.

“Their expertise and support helped us implement a pilot program quickly. Early results have exceeded expectations with almost £7m in capital being advanced to GoCardless customers. Customer feedback has been overwhelmingly positive, with the program achieving an impressive 88 Net Promoter Score. 

“The strong conversion rates from the pilot show there is pent-up demand for this type of financing. We look forward to fully launching this embedded product next year, helping customers tap into new opportunities for growth and expansion while continuing to build their trust and loyalty in GoCardless.”

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