New data from YouLend, the global embedded financing platform, reveals a 30% rise in financing applications from consumer and retail businesses in peak season, as compared to the usual trading months.

As the US and Europe gear up for one of the biggest holiday shopping seasons on record, it means that many SMBs are scrambling to find alternative finance options to help keep their businesses afloat during this period.

While most see holiday promotions as a vital opportunity to boost revenue, 54% of SMBs cite affordability and cash flow limitations as the biggest barrier to fully capitalising on the sales surge.

The spike in funding applications indicates a deeper trend; embedded finance has become a necessity for small businesses looking to stay competitive, maintain cash flow, and seize growth opportunities with confidence.

SMBs face seasonal costs and pressure to deliver

Alongside cash flow challenges, small retailers are facing a growing list of pressures this Black Friday:

• Increased customer traffic (37%)
• Seasonal marketing expenses (35%)
• Excess inventory ordering (32%)
• Handling returns and exchanges (20%)
• Supply chain disruptions (15%)

Over a third of global SMBs report having no cash reserves, and more than 50% rate access to finance as ‘poor’.

At the same time, many small businesses are also struggling to secure timely support from traditional lenders. Lengthy approval processes, rigid repayment terms, and strict eligibility criteria often mean that funding arrives too late – or not at all – to meet fast-moving retail demand.

In response, SMBs are turning to the platforms they already know and trust. E-commerce and payments providers like Amazon, eBay, and Dojo are stepping in through embedded finance, giving merchants instant access to working capital right where they sell and transact.

By securing capital through these embedded channels, merchants can act early:

• Buy stock in bulk to meet rising demand
• Launch marketing campaigns sooner to capture shopper attention
• Extend Black Friday promotions into a month-long sales window to maximise revenue

“For SMBs, Black Friday isn't just another day of sales; it’s the moment that can define their entire year,” said Emmeline Cockshutt, Head of Sales at YouLend. “Embedded finance gives merchants access to the capital they need exactly when they need it, not weeks later. When traditional lenders are too slow or simply say no, this flexibility becomes the key to turning a strong strategy into real sales growth.”

Beyond Black Friday: embedded capital becomes core to SMB growth

The rush for cash before Black Friday highlights a deeper issue: too many small businesses are still managing cash flow reactively instead of strategically. Working capital shouldn’t be a seasonal scramble; it should be a year-round financial tool that moves with the rhythm of the business.

Globally, SMBs using YouLend’s embedded financing report 25-50% growth in GMV, while ecosystem partners see up to 75% lower churn after integrated embedded financial products.

These results signal a clear shift in behaviour. SMBs are actively seeking smarter financial products and platforms that are moving quickly to integrate these solutions are benefitting from deepening customer relationships and are already essential growth partners for their customers.

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