This page provides a comprehensive glossary of key terms and definitions used throughout the YouLend API ecosystem. Understanding these terms is essential for successful integration and operation within the YouLend platform.
📘Cash Advances vs. Loans: YouLend provides cash advances based on revenue-based financing, not traditional loans. While the API documentation may use "loan" terminology for simplicity and familiarity, the actual financial product is a cash advance where repayment is tied to a percentage of daily card sales. This distinction is legally important in certain jurisdictions where traditional lending regulations may not apply to revenue-based financing products.
| Term | Definition | Context |
|---|
| Lead | A potential customer application for funding | Primary entity in onboarding process |
| Lead ID | Unique identifier (GUID) for a customer application | Used across all APIs for tracking |
| Third Party Customer ID | Partner's unique identifier for a merchant | External reference maintained by lending partners |
| Merchant | Business entity seeking funding | Core customer type |
| Borrower | The entity that receives and repays the cash advance | Legal entity responsible for repayment |
| Lending Partner | YouLend's business partner who refers customers | Channel partner in the ecosystem |
| Significant Person | Key individuals associated with a business (Directors, Beneficial Owners) | Required for KYC compliance |
| Term | Definition | Context |
|---|
| Cash Advance | Revenue-based financing provided to merchant | Core financial product (legally distinct from loans) |
| Loan | API terminology for cash advance (for simplicity) | Used in documentation but actual product is cash advance |
| Advance | Alternative term for cash advance | Preferred product terminology |
| Factor Rate | Multiplier applied to determine total repayment amount | Pricing mechanism (e.g., 1.1 means 10% fee) |
| Funded Amount | Actual amount disbursed to merchant | What merchant receives |
| Original Amount | Total amount merchant must repay | Funded Amount × Factor Rate |
| Current Amount | Outstanding balance remaining | Dynamic value that decreases with payments |
| Sweep | Percentage of daily card transactions used for repayment | Repayment mechanism (e.g., 10% of daily sales) |
| Maturity Date | Final date by which advance must be fully repaid | Contract term |
| Auto Repayment Sweep | Automated collection of agreed percentage from transactions | Payment automation feature |
| Revenue-Based Financing | Financing model where repayment is tied to business revenue | Legal structure of YouLend's cash advances |
| Sales-Based Repayment (SBR) | Repayment through percentage of daily card sales | Primary repayment method for revenue-based financing |
| Term | Definition | Context |
|---|
| Pre-Qualification | Initial eligibility assessment | Screening mechanism |
| Pre-Approval | Preliminary approval based on payment data | Quick assessment tool |
| Onboarding | Complete process of application, approval, and funding | End-to-end customer journey |
| Stage 1 | Initial application submission phase | First phase of onboarding |
| KYC (Know Your Customer) | Identity verification and compliance documentation | Regulatory requirement |
| Credit Risk Check | Assessment of merchant's creditworthiness | Underwriting process |
| Underwriting | Process of evaluating merchant's eligibility and determining terms for cash advance | Risk assessment and approval decision |
| Fast Track | Expedited onboarding process for pre-approved merchants | Accelerated processing |
| Term | Definition | Context |
|---|
| Bank Statements | Financial records showing account activity | Required for underwriting |
| Proof of Identity | Documentation verifying individual identity | KYC requirement |
| Proof of Address | Documentation confirming residential/business address | KYC requirement |
| Management Accounts | Internal financial statements | Business financial documentation |
| Payment Data | Transaction history from payment processors | Core underwriting data |
| Cash Advance Agreement | Legal contract for the funding | Signed contract document |
| Direct Debit Mandate | Authorization for automatic payments | Payment setup document |
| Term | Definition | Context |
|---|
| Instant Settlement | Immediate funding against future card receipts | Accelerated funding product |
| Settlement Cycle | Time period for transaction processing and payment | Operational timeline |
| MID (Merchant ID) | Payment processor identifier for merchant | Technical identifier |
| Payment Gateway | Service that processes card transactions | Technology platform |
| Chargeback | Disputed transaction reversed by card issuer | Risk factor in payments |
| Refund | Money returned to customer | Transaction adjustment |
| Transaction Data | Detailed payment processing information | Core data for decision making |
| Term | Definition | Context |
|---|
| Country ISO Code | Three-letter country identifier (e.g., GBR, USA) | Geographic classification |
| Currency ISO Code | Three-letter currency identifier (e.g., GBP, USD) | Financial denomination |
| Company Type | Legal structure of business (Ltd, LLC, etc.) | Regulatory classification |
| SIC Code | Standard Industrial Classification code | Business activity classification |
| MCC (Merchant Category Code) | Payment industry business classification | Risk categorization |
| VAT Number | Value Added Tax registration identifier | Tax compliance identifier |
| Term | Definition | Context |
|---|
| Webhook | HTTP callback for real-time notifications | Integration mechanism |
| Bearer Token | Authorization token for API requests | Authentication method |
| Embed Token | Temporary token for embedded components | UI integration feature |
| Term | Definition | Context |
|---|
| Stage 1 Incomplete | Initial application not yet submitted | Application status |
| Stage 1 Submitted | Application submitted for review | Application status |
| Offers Provided | Cash advance offers generated and presented | Application status |
| Offer Accepted | Merchant has accepted a cash advance offer | Application status |
| Contract Signed | Legal agreements have been executed | Application status |
| Onboarding Complete | Full process finished, ready for funding | Application status |
| Pending Information | Additional details required from merchant | Application status |
Note: This terminology reference is based on the YouLend API documentation and covers the essential concepts used across all platform APIs. While API documentation may use "loan" terminology for familiarity, all YouLend products are revenue-based cash advances. For specific implementation details, refer to the individual API documentation sections.
