South African payments company Yoco has secured a $100 million credit facility from US investment firm Victory Park Capital Advisors to expand its merchant lending to small businesses. The financing is described as Yoco’s first direct debt arrangement, enabling it to fund merchant cash advances through its platform. The reported aim is to support merchants’ day-to-day and growth needs, including purchasing inventory, hiring employees, upgrading equipment and opening new locations.
Context across the coverage links the deal to Yoco’s broader shift into lending. One outlet emphasizes that Yoco is using payments data to assess small businesses and manage credit risk as it grows the merchant financing operation. Bloomberg’s Markets coverage also frames the company’s private-credit arrangement in the context of backing by private equity firm TPG.
Across outlets, Moneyweb adds executive framing about greater in-house control over merchants’ financing at scale, while TechCabal highlights how control over credit risk increases with the expansion.
