For this solution, YouLend are responsible for splitting the funds. This solution requires no development work from the partner because no calculation of the sweep or withholding of funds needs to take place at the partner level. Partners will use their existing change of bank process to reroute the funds into the settlement account.

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Good to know

This option is currently only available for partners operating in the UK and EU

Repayment journey

1. When a merchant is funded, YouLend will create a virtual account (settlement account) in the name of that merchant.
2. YouLend will notify the partner with the details of the account (either via API or offline).

Example response from the AOL endpoint

[
    {
        "iban": "DK7389000112017272",
        "virtualIban": "DK8389222292389284",
        "secondaryVirtualIban": "GB85SAPY62838292389284",
        "accountName": "Test Company Limited - SXP Settlement - GBP",
        "currencyISOCode": "GBP",
        "accountOpeningLetter": {
            "documentId": "7fd7c2b5-37fc-4df8-a710-dbfbf5a5cef1",
            "document": "JVBERi0xLjYKJeLjz9MKMjI",
            "documentName": "Test Company Limited - Account Opening Letter.pdf",
            "documentType": "application/pdf"
        },
        "domesticAccountNumber": "92389284",
        "domesticSortCode": "628382",
        "partner": "Test Account",
        "swift": "SXPYDKKK",
        "thirdPartyCustomerId": "89ab144"
    }
]

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Good to know

virtualIban and secondaryVirtualIban have the same destination, the difference is that virtualIban is typically a DK IBAN, and the secondaryVirtualIban is typically GB. Partners can decide if they wish to send international, or domestic repayments

Example payload from the ONB10035 webhook event

{
    "EventCode": "ONB10035",
    "Message": "The Settlement/Repayment account details are ready to fetch from the AOL endpoint to begin the re-routing process",
    "EventProperties": {
        "LeadId": "f926dgc2-30r6-4721-89c7-2a3f21dfa380"
    }
}

3. The partner will use their existing change of bank process to redirect 100% of the merchant's normal payouts to this virtual account.
4. Each day, the merchant's payout from the partner gets sent to the YouLend virtual accounts (one payment per account, one account per merchant).
5. When funds reach this account, YouLend will retain the sweep % owed and forward the remaining funds on to the merchant immediately.
6. When the funding is repaid, there are three options available:
   1. The virtual account stays in place for a renewal funding.
   2. The virtual account stays in place and YouLend forward 100% of the funds received on to the merchant.
   3. The partner uses their existing change of bank process to change the merchant's payout account back to their original/updated business bank account.