A prequalified offer is an indicative funding amount that can be used to market to a merchant. These teaser offers can be presented in a few ways, for example:
- Surfaced within your native application environment
- Sent via scheduled or triggered email marketing (or direct mail)
- Integrated into the workflow of your customer support team so they can discuss cash advance when they speak with your merchants
Prequalified offers can be calculated by providing YouLend with anonymised history of sales/ payments/ payouts (collectively known as "payment data") for a merchant. YouLend will return a result for each merchant indicating whether that merchant is eligible for cash advance or not, and if so for how much. This can be done via two routes:
- Via Prequalification API
- Via file exchange
Good to know
For a merchant to be prequalified a minimum of three months' data must be provided. YouLend recommend that partners share at least 12 months to get more accurate offers
Payment data should be shared as aggregated data, not transaction level data
Prequalification works at the level of individual card terminals or payment gateways. For merchants with multiple terminals or payment gateways, please provide data for each terminal and payment gateway separately. We refer to the legal entity-level as "customer level", and to terminal/ gateway-level as "location level". Once you have prequalified offers at location level, you can aggregate them by customer if that is more relevant for your marketing approach.
Best practice
The prequalified amount is generally very close to the final offer. The fee and the repayment percentage ('sweep') are more likely to differ
At the prequalification stage, we recommend using only the highest funding amount from the prequalified offers as an enticement, without providing the detailed fee and repayment percentage
Example copy: You are prequalified for business funding of up to £27,400 based on your card sales. Apply here
Example prequalification file (csv)
| CustomerId | Jun-24 | Jul-24 | Aug-24 | Sep-24 | Oct-24 | Nov-24 | Dec-24 |
|---|---|---|---|---|---|---|---|
| 1 | £1,010 | £6,024 | £1,010 | £6,024 | £9,500 | £6,024 | £6,024 |
| 2 | £2,501 | £1,010 | £9,500 | £1,010 | £1,010 | £2,501 | £9,500 |
| 3 | £5,010 | £6,024 | £6,130 | £2,501 | £4,120 | £1,010 | £6,024 |
| 4 | £9,500 | £1,010 | £1,010 | £6,024 | £6,024 | £6,024 | £2,501 |
| 5 | £1,012 | £7,510 | £1,019 | £7.016 | £2,501 | £1,010 | £1,010 |
| 6 | £2,913 | £1,300 | £2,501 | £1,010 | £6,024 | £9,500 | £6,024 |
Disallowed SIC Codes
There are certain industries which YouLend cannot fund. We recommend screening out merchants in these industries before data is sent to YouLend for prequalification
| SIC | Description |
|---|---|
| 1150 | Growing of tobacco |
| 1280 | Growing of spices, aromatic, drug and pharmaceutical crops |
| 80100 | Private security activities |
| 92000 | Gambling and betting activities |
| 93191 | Activities of racehorse owners |
| 5101 | Deep coal mines |
| 5102 | Open cast coal working |
| 5200 | Mining of lignite |
| 6100 | Extraction of crude petroleum |
| 6200 | Extraction of natural gas |
| 7100 | Mining of iron ores |
| 7210 | Mining of uranium and thorium ores |
| 7290 | Mining of other non-ferrous metal ores |
| 8110 | Quarrying of ornamental and building stone, limestone, gypsum, chalk and slate |
| 8120 | Operation of gravel and sand pits; mining of clays and kaolin |
| 8910 | Mining of chemical and fertilizer minerals |
| 8920 | Extraction of peat |
| 8930 | Extraction of salt |
| 8990 | Other mining and quarrying n.e.c. |
| 9100 | Support activities for petroleum and natural gas mining |
| 9900 | Support activities for other mining and quarrying |
| 12000 | Manufacture of tobacco products |
| 19201 | Mineral oil refining |
| 20110 | Manufacture of industrial gases |
| 20130 | Manufacture of other inorganic basic chemicals |
| 20140 | Manufacture of other organic basic chemicals |
| 20150 | Manufacture of fertilizers and nitrogen compounds |
| 20200 | Manufacture of pesticides and other agrochemical products |
| 20510 | Manufacture of explosives |
| 21100 | Manufacture of basic pharmaceutical products |
| 21200 | Manufacture of pharmaceutical preparations |
| 24410 | Precious metals production |
| 24420 | Aluminium production |
| 24430 | Lead, zinc and tin production |
| 24440 | Copper production |
| 24450 | Other non-ferrous metal production |
| 24460 | Processing of nuclear fuel |
| 25400 | Manufacture of weapons and ammunition |
| 30400 | Manufacture of military fighting vehicles |
| 35140 | Trade of electricity |
| 35210 | Manufacture of gas |
| 35220 | Distribution of gaseous fuels through mains |
| 35230 | Trade of gas through |
| 64191 | Banks, If the applying entity is FCA regulated. |
| 64921 | Credit granting by non-deposit taking finance houses and other specialist consumer credit grantors. If the applying entity is FCA regulated. |
| 64922 | Activities of mortgage finance companies. If the applying entity is FCA regulated. |
| 94910 | Activities of religious organisations. This could include but is not limited to: Religious Buildings, Charities run by religious organisations |