Dojo card machine finance passes 2bn: how merchant funding works

What was announced

YouLend and card payments provider Dojo announced on 14 September 2026 that their partnership has provided more than £2 billion in funding to UK small and medium sized businesses over six years. The milestone covers funding that has gone to more than 30,000 Dojo merchants across hospitality, retail and eCommerce. The two companies also said funding volumes doubled from £1 billion to £2 billion in less than 15 months, a pace that puts the second billion well inside the time it took to reach the first.

The operational numbers attached to the announcement describe a high volume, small ticket model. The companies say a Dojo customer is approved for funding every 20 minutes, and that more than 1,000 merchants have renewed their funding ten times or more. YouLend says merchants who access funding through Dojo renew 83% of the time. The companies cite an estimated UK small business funding gap of between £1.6 billion and £4.1 billion a year, which is the demand backdrop they are positioning the facility against. For a card machine provider, the funding line is now part of the product rather than a separate referral.

How merchant funding works

The finance sits inside Dojo's payments platform. A business applies through the platform, can receive funds in as little as 24 hours, and repays through a fixed share of future card sales. The advance is made against expected card takings rather than against a fixed schedule, so the amount collected on any given day moves with the till. A strong week repays more of the balance; a quiet week repays less. There is no fixed term in the way a bank loan has a set maturity date, because the repayment period flexes with sales.

Revenue based finance of this kind is priced as a fixed fee agreed up front rather than an interest rate. The fee is typically expressed as a factor applied to the advance, so a business knows the total repayable before signing. What it does not know with certainty is the calendar date on which the balance clears, because that depends on card volume. The structure is designed for merchants whose income arrives through the same card terminal that collects the repayments, which keeps the cash flow and the repayment in one place. It also means the facility is only available to businesses that already process card payments through the provider.

What it costs compared with a bank loan

Because the cost is a fixed fee rather than an interest rate, the headline number is not directly comparable with a bank loan quote. The fee is agreed up front and expressed as a factor of the advance, so the total repayable is known at the outset. The effective annual cost, however, depends on how quickly the balance is repaid. If card sales are strong and the fixed share clears the advance quickly, the same fixed fee is paid over a shorter period, which raises the effective annual cost. If sales are slower, the fee is spread over a longer period and the effective annual cost falls. The fee itself does not change with the speed of repayment.

That creates a difference in behaviour compared with a bank loan. A bank loan typically carries an interest rate and a fixed term, and many lenders reduce the charge if the borrower repays early. With a fixed fee structure of this kind, there is no early repayment saving: repaying faster does not reduce the total fee, it simply concentrates the same cost into a shorter window. A merchant comparing the two should look at the total repayable in pounds against the amount advanced, then consider how quickly their card sales are likely to clear it. A bank overdraft or a Start Up Loan may price differently and may carry a different total cost for the same sum.

Who it suits and who it does not

The model suits seasonal and card heavy trades. Hospitality, retail and eCommerce businesses that take the majority of their income through card payments can match repayments to the same revenue stream that funds them, and a seasonal dip automatically slows repayment rather than triggering a missed instalment. Businesses that need a defined end date for budgeting, or that want to know exactly when the facility will be off the books, may find the flexible term harder to plan around. The absence of a fixed maturity is a feature for some and a planning problem for others.

It is less suited to cash heavy or low margin businesses. A business that takes a large share of income in cash will repay more slowly, because only card sales feed the fixed share, and a low margin business has less room to absorb a fixed fee on top of existing costs. The 83% renewal figure cuts both ways. It shows that a large majority of merchants who take funding through Dojo come back for more, which suggests the product fits their cash flow. It also shows that repeat borrowing is the norm rather than the exception, and more than 1,000 merchants have renewed ten times or more. Frequent renewal can be a sign of a useful working capital tool, or a sign that the business is using new advances to manage the repayments of earlier ones. The distinction matters when assessing whether the facility is supporting growth or covering a gap.

Protections for business borrowers

Business lending to companies is generally not regulated by the FCA in the way consumer credit is, so protections differ from personal borrowing. That means the safeguards a director might expect on a credit card or a personal loan do not automatically apply to a funding agreement signed by the business. The practical response is to read the contract before signing, and to identify three numbers: the amount advanced, the total repayable including the fee, and the fixed share of card sales that will be collected. Those three figures determine the cost and the pace of repayment.

It is also worth checking what happens if sales fall. Because the repayment period flexes with sales, a slow month should extend the term rather than create arrears, but the contract is the place to confirm that. A merchant should also check whether the agreement includes any minimum repayment, any fixed term outside the sales linked collection, and what happens if the business stops taking card payments through the provider. The companies cite an estimated UK small business funding gap of between £1.6 billion and £4.1 billion a year, which explains why embedded facilities have grown, but the size of the gap does not change the terms of any individual agreement. The contract does.

Source: YouLend and Dojo announcement.

Related coverage on Kael Tripton: Worldpay Card Machine Fees UK 2026: £20.00 Monthly Terminal Cost, Card Machines for Salons 2026: Deposits, No-Shows and the 1.69% Fee, SumUp Card Reader Fees UK 2026: 1.69% Rate, Hardware and Payout, SumUp Review UK 2026: Pricing, Pros and Cons, Before You Take a Merchant Cash Advance: Factor Rates, True APR and the FCA Regulation Gap.

Frequently asked questions

What did YouLend and Dojo announce?

On 14 September 2026 the two companies announced that their partnership has provided more than £2 billion in funding to UK small and medium sized businesses over six years. The funding has gone to more than 30,000 Dojo merchants across hospitality, retail and eCommerce, and volumes doubled from £1 billion to £2 billion in less than 15 months.

How does the merchant funding work?

The finance sits inside Dojo's payments platform. Businesses apply through the platform, can receive funds in as little as 24 hours, and repay through a fixed share of future card sales. The repayment period flexes with sales rather than following a fixed term.

How is it priced?

Revenue based finance of this kind is priced as a fixed fee agreed up front rather than an interest rate. The fee is expressed as a factor of the advance, so the total repayable is known at the outset, but the effective annual cost depends on how quickly card sales clear the balance.

Is there an early repayment saving?

No. With a fixed fee structure of this kind, repaying faster does not reduce the total fee. It concentrates the same cost into a shorter period, which raises the effective annual cost.

Who does it suit?

It suits seasonal and card heavy trades such as hospitality, retail and eCommerce, where repayments can be matched to the same card revenue that funds them. It is less suited to cash heavy or low margin businesses.