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.

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Cash Advances vs. Loans: In most cases and jurisdictions, YouLend provides cash advances structured as revenue-based financing rather than traditional loans. While the API documentation may use "loan" terminology for simplicity and familiarity, the underlying financial product is typically a cash advance, where repayment is linked to a percentage of daily card sales. This distinction is legally important in certain jurisdictions, as traditional lending regulations may not apply to revenue-based financing products.

Core Business Entities

Term	Definition	Context
Lead	A customer's application for funding	Primary entity in onboarding process
Lead ID	Unique identifier (GUID/string) for a customer application	Used across our APIs and webhooks for tracking
Third Party Customer ID	Partner's unique identifier for a merchant	External reference maintained by our partner
Merchant	Business entity seeking funding	Core customer type
Borrower	The entity that receives a cash advance	Legal entity responsible for payment
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

Cash Advance and Funding Terms

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 sales used for payment	Repayment mechanism (e.g., 10% of daily sales)
Maturity Date	Final date by which advance must be fully repaid	Contract term
Revenue-Based Financing	Financing model where repayment is tied to business revenue	Legal structure of YouLend's cash advances
Sales-Based Repayment (SBR)	Automatic repayment through percentage of daily sales	Primary repayment method for revenue-based financing

Application Process Terms

Term	Definition	Context
Pre-Qualification	Initial eligibility assessment for marketing purposes	Screening mechanism
Pre-Approval	Preliminary approval based on payment data	Offers including amount, duration, and price
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 partners owning the underwriting process	Accelerated processing

Document Types

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

Payment and Settlement Terms

Term	Definition	Context
Instant Settlement	Immediate funding against card sales before they have settled	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

Geographic and Regulatory

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

Technical and Integration Terms

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

Application Status Terms

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.