Dutch fintech Mollie has announced the UK launch of Mollie Capital, a service that allows merchants bypass traditional lenders to access capital more seamlessly.
In a statement, it said that UK retailers will be able to access up to £250,000 to help drive growth. By using Mollie Capital, they will not need to go through a lengthy application process or produce reams of financial data as is often the case with traditional lenders, Mollie said.
Once a merchant has been processing payments with Mollie for 90 days, they are immediately eligible to apply for funding. The application process takes just five minutes, and once a decision is made the funds are transferred within 24 hours, Mollie said. There is a fixed one-time fee with a repayment plan based on a percentage of a company’s daily sales.
In Europe, where the service launched in late 2022, SMEs have reportedly used Mollie Capital to take advantage of deals to acquire cut-price inventory and boost marketing spend during peak shopping periods.
To date Mollie Capital, which is offered in conjunction with YouLend, has provided loans exceeding €50 million to over 5,000 SMEs in the Netherlands, Belgium and Germany. Unsurpsingly, applications for funding are highest during peak shopping periods, such as Black Friday and the festive period.
“Mollie Capital is our first financial service to launch in the UK – the first of many designed to eliminate financial bureaucracy for SMEs,” said Mia Hunter, Managing Director of Mollie UK.
“For too long, small and mid-size UK merchants have been neglected by incumbent payment services providers, lenders and banks. They just don’t invest in the simplicity and flexibility SMEs need to manage their finances. Mollie Capital fills a critical gap in the UK market. In Europe, we have customers repeatedly using, and paying back, this new source of funding to drive impressive levels of sustainable growth,” she added.
Mollie initially launched in the UK in early 2021, licenced via the Temporary Permissions Regime for EU-based financial services firms. It was granted a Payment Institution licence from the UK’s Financial Conduct Authority in June 2023.
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