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Yoco solves for SMEs' interrupted cash flow

Yoco has launched Instant Payout, enabling small business owners to access their funds instantly.
Source: Supplied.
Source: Supplied.

Customers using Yoco payment tools such as card machines or online payments can transfer their funds from sales to their bank account within minutes using Instant Payout.

It provides a solution to one of the biggest pain points for small businesses: intermittent cash flow.

The ability to access funds immediately serves as a critical lever in business continuity yet has remained inaccessible to many small businesses – up until now.

The financial health of the typical small business is notoriously precarious and is further compounded by the fact that payout typically takes up to one or two business days.

The delay between making a sale and accessing funds often spells the difference between the ability to trade and having to close up shop. Interrupted cash flow ultimately hinders small business growth and to ensure business continuity, small business owners frequently turn to family or other sources to buy stock for the next day, pay staff, or pay rent.

Ultimately, the perpetual cycle of resorting to “quick fixes” for interrupted cash flow has the knock-on effect of hindering business growth.

Ensuring liquidity

“Instant Payout is all about liquidity. Business doesn’t wait, and for small businesses, the difference between being able to access earned money in minutes instead of days is significant – playing a critical role in their success.

"We’ve seen business owners use Instant Payout at all hours of the day, from paying staff wages to buying stock. We’re excited to see how this feature empowers our customers to grow their businesses,” says Michael Bouwer, group product manager of Yoco Payments Experience.

“Instant Payout has been incredibly beneficial to us: the ability to quickly access funds from our daily card transactions has helped to solve cash-flow issues, and means that we can buy stock and offer staff incentive bonuses. It’s a really valuable offering,” says Armand Potgieter, co-owner of BakeryCo.

The next step of evolution

Instant Payout signals another step towards evolution for Yoco as they shift focus from ‘just simple card payments’ to an inclusive financial ecosystem for small business owners. Similar to the impact of Yoco Capital (a cash advance available to qualifying Yoco merchants), instant payouts can change how customers think about and use their money.

“We continue to build products with our customers, instead of for them,” commented Lungisa Mathoba, chief technology officer. “This principle means that instead of chasing external ideas of innovation, we are continuously looking inwards and asking customers what they need in order to sustain and grow their businesses.

"We believe that by creating a connected commerce experience through our card machines, app, and other products, we can help small business owners shift into a new phase of their growth.”

Instant Payout is available to most active trading customers (using either in-person or remote payment tools) and it can be found exclusively in the Yoco app. Payouts are charged through a simple fee structure starting at R15 per payout. It is important to note that Instant Payout is an optional feature – customers can continue to transact and receive their funds within the normal one to two business day timeframe at no extra cost.

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