#USA #New York #Embedded Finance #Adyen #Fresha Capital

Adyen and Fresha Capital: A Game-Changer for Beauty and Wellness SMEs

Introduction

In a major stride towards empowering small and medium-sized enterprises (SMEs) in the beauty and wellness sector, Adyen, a leading global financial technology platform, has partnered with Fresha, an elite marketplace for beauty and self-care services, to launch Fresha Capital. This platform is designed to provide rapid and flexible capital solutions, and it has successfully granted over $5.5 million in funding across seven countries. The markets include the USA, UK, Australia, Canada, Netherlands, Finland, and Sweden.

A New Financial Ecosystem

Fresha Capital enables businesses on the Fresha platform, which encompasses 140,000 contributors and 450,000 professionals in self-care, to efficiently access the capital necessary for their growth. This offering comes as a response to some of the industry’s pressing financial challenges—like securing immediate funds for new equipment or ensuring sufficient staffing during peak seasons.

The funding model is straightforward, centered on sales performance, which streamlines the otherwise cumbersome application processes typically associated with traditional banking.

Key Features of Fresha Capital

1. Fast Funding Access: Fresha users can quickly view pre-approved offers and apply for funding within seconds—often receiving the necessary capital within mere hours or, at the latest, the following business day.
2. Flexible Loan Amounts: Funding options range from $500 to $50,000, tailored specifically to the revenue performance of the business.
3. Transparent Repayment Plans: Repayment is seamlessly integrated as a set percentage of daily sales (ranging from 1% to 15%), meaning businesses pay back more when they earn more and vice versa, all within a flexible nine-month loan period. Importantly, there are no penalties for early repayment.

Real-world Impact

This initiative has been particularly crucial for SMEs, as illustrated by success stories from various salon owners. Betty Zhang, proprietor of The Usual Lash, encountered a crisis with limited liquidity and a pressing expansion plan. Fresha Capital provided the funding she needed within 24 hours, enabling her to redirect focus towards growth rather than liquidity issues.

Similarly, Justin Barrett from Himalayan Salt Therapy faced post-tourist season constraints and leveraged Fresha Capital for a timely financial cushion. The funding not only secured payroll during tough months but allowed for a successful marketing campaign that subsequently boosted sales.

Strategic Advantages for Fresha

The partnership with Adyen has proven beneficial for Fresha, significantly elevating its value proposition by integrating financial services within its platform. This merger of technology and finance enhances user retention and loyalty and creates a robust ecosystem where capital flows effortlessly among stakeholders. Other strategic advantages include:

• - Enhanced Customer Loyalty: Providing immediate financing options solidifies Fresha’s role as a key partner for its users.
• - Sustained Growth: The infrastructure behind Adyen Capital equips Fresha with proven success in the industry, with 80% of borrowers returning for second loans.
• - Risk Absorption: Adyen assumes all credit-related risks, thus presenting minimal financial exposure for Fresha.

Conclusion

The inception of Fresha Capital marks a pivotal moment for the beauty and wellness industries, showing how integrated financing can respond to the unique needs of SMEs. As the partnership expands into more markets, it signifies a new chapter in the ongoing evolution of financial services. Through innovation and collaboration, Fresha and Adyen are not just revolutionizing access to capital but also setting new standards for customer engagement and loyalty in the services sector.

For more information, visit fresha.com or explore the Adyen platform for a deeper understanding of their offerings and capabilities.

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About Fresha

Fresha is a leading marketplace platform trusted by millions of consumers and businesses worldwide, helping to book and pay for beauty and wellness appointments seamlessly.

About Adyen

Adyen (ADYEN AMS) is the preferred financial technology platform for major corporations, streamlining end-to-end payment capabilities globally. Through continuous growth and innovation, Adyen partners with various organizations, ensuring they reach their operational goals efficiently.