At YouLend merchants only pay down one financing at a time. When an early renewal is funded it does not receive payments until the initial has fully paid.

If the early renewal has a different sweep percentage to the initial - the sweep percentage of the initial is adjusted for the remainder of the term.

Managing Early Renewals (SBR)

For partners using a partner facilitated sales based repayments solution, either bulk or using virtual accounts partners need to be able to handle early renewals appropriately.

They are managed as follows:

1. "Loan A" is created

The merchant completes an application with YouLend, and receives a cash advance. We will refer to this initial loan as "Loan A".

The partner will be notified of the creation of "Loan A" via the Loan funded webhook LOA10013 (typically used in the EU) or LOA10036 (typically used in the US).

👍
Best practice
Visit our Webhooks Events page for more information regarding the event codes

2. Merchant begins repayments against "Loan A", and is offered a renewal

Once the merchant has made sufficient repayments against a funding, YouLend will mark the merchant as being eligible for a renewal. This information can be gathered either via the Renewals endpoint, or the merchant can be notified when next visiting their YouLend portal.

3. Merchant completes renewal application

Once a merchant is funded for a renewal, a new loan is created. We will refer to this new loan as "Loan B". The state of this loan will be Funded (Pending Settlement). "Loan B" will not start repaying until the previous loan ("Loan A") has been fully repaid.

📘
Good to know
Funded (Pending Settlement) a loan will transition to this state once the financing has been fully funded, but it’s not yet actively repaying (this status is only used for Early Renewals)

"Loan B" (renewal loan) may have different terms/ a different sweep percentage associated with it, if this is the case, the existing loan repayments will update to reflect this.

These details will be included in the previously mentioned LOA10013 webhook.

Example payload

{
  "EventCode": "LOA10013",
  "Message": "Lead has received funding",
  "EventProperties": {
    "Sweep": "20.0",
    "OriginalAmount": "24993.0",
    "LeadId": "d38f0c1b-812f-4770-81f3-d621c63e5177",
    "LoanNumber": 60000352,
    "LoanId": "4c2ce781-7aa9-40b0-aed5-19b6dff754ab",
    "RepaymentFrequency": "",
    "RepaymentMethod": "Sales Based Repayment - Re-Routing",
    "DateFunded": "2025-05-19T00:00:00Z",
    "ThirdPartyCustomerId": "89ab144",
    "Amount": "19300.00",
    "ExpectedRepayment": 999.72,
    "CurrencyISOCode": "GBP"
  }
}

4. Merchant fully repays "Loan A"

Once the merchant has fully repaid "Loan A" (the initial loan), you will receive the loan repaid webhook LOA10032.

Example payload

{
    "EventCode": "LOA10032",
    "Message": "The merchant has repaid the loan",
    "EventProperties": {
        "LoanId": "f926rfc2-30b6-4821-89c7-2a3f11dda380",
        "LeadId": "f926dgc2-30r6-4721-89c7-2a3f21dfa380"
    }
}

Once this event has been received for "Loan A", you can now start repayments against "Loan B".

📘
Good to know
You can use the above logic when looking at future renewals too, "Loan C", "Loan D", etc