Embedded lending: What is it and how does it benefit your platform?

Embedded lending is the integration of business financing services directly into non-financial businesses, such as SaaS platforms or marketplaces. 

It allows platforms to offer pre-approved loans to their customers, without redirecting them to third-party banks or lenders.

Here are the three most common approaches:

• Standalone embedded lenders: Aggregators act as a middle layer between a platform and a partner bank. They offer the modern software tools and APIs that make the integration easier, but add another layer of communication. Platforms using aggregators are subject to the third-party bank's risk appetites and policies, which may affect the ability to serve certain types of users.

• Full-stack BaaS provider: A full-stack Banking as a Service provider offers the highest level of reliability and speed by combining banking licenses and infrastructure in a single solution. This means updates and money movement is faster. For platforms looking to scale, a full-stack provider with global licenses ensures a consistent product experience as the business expands into new markets.

Instead of a traditional, paper-heavy application process, the financing journey is completely digitalized and contextual.

Here is a step-by-step process of how embedded lending works:

1. Check eligibility and receive an offer: The platform reviews the customers business data (sales, payments, bank activity, or transaction history) and determines whether they’re eligible. Some customers may see pre-qualified offers directly in their dashboard.

2. Complete a short application: The customer provides business details and any required verification information. The provider performs automated underwriting and risk checks to confirm the offer. The process is typically digital and designed to take only a few minutes.

3. Accept the offer and receive funds: If approved, the customer reviews the funding terms, electronically signs the agreement, and the funds are deposited into their business account — often within days and sometimes as quickly as one day.

4. Repay automatically from future sales: Repayments are usually collected as a fixed percentage of future sales or revenue until the agreed amount is repaid. Payments rise and fall with business performance rather than following a fixed monthly loan schedule.

In one sentence, embedded lending works like this: Eligibility check → Application and verification → Accept funding offer → Automatic repayment from future sales.

Offering financial services directly within your ecosystem creates significant advantages for both platforms and their users, including:

Increased customer lifetime value

For SaaS platforms, embedded lending transforms the relationship from software provider to growth partner. By offering access to capital within the platform, businesses become more deeply embedded in their customers' day-to-day operations, increasing stickiness and reducing churn.

Lending also creates a retention flywheel. As merchants return for additional financing and use capital to grow their businesses, platform engagement, transaction volume, and revenue per customer can increase over time. These ongoing financial interactions also create opportunities to cross-sell additional products and services, further boosting customer lifetime value.

New revenue streams

Embedded lending allows platforms to monetize existing payment flows and open up new revenue streams without taking on the regulatory burden or financial risk of becoming a bank themselves.

They can also make margin off of fees followed by financial products like embedded lending. 

Faster access to capital for users

With direct visibility into user activity, platforms can offer financing options and issue cash advances or loans based on real-time data. This allows for quicker decision-making and faster access to funds compared to traditional banking processes.

Goose added embedded finance to help pet care businesses scale smarter

Goose saw an opportunity to go beyond software and solve one of the industry’s biggest pain points: access to growth capital.

With embedded finance powered by Adyen, Goose is making it easier for pet care businesses to access capital and expand. Capital offers show up in the same tool pet care businesses use every day. The experience is seamless and repayments adjust automatically based on real-time business performance. 

Now, Goose helps businesses grow and scale effectively while streamlining daily tasks. By combining operational tools with fast, flexible access to capital, the platform makes it easier for pet care businesses to take the next step to growing their business.

Jackrabbit Technologies launched embedded lending to help underserved businesses grow

After streamlining cash flow with Jackrabbit Pay in 2023, lending was a natural next step for 

Jackrabbit Technologies. The platform launched Capital powered by Adyen, in 2025 to help users reduce financial friction.

With its capital offering, Jackrabbit Technologies is helping youth activity centers with fast, flexible access to funding, embedded directly in the platform they already rely on for operations. 

The result?

• < 3 months to launch from start to finish

• 27 grants disbursed since launching Capital

• Over $225,000 loans funded

Timma drives growth for Nordic salons

Timma, a leading Nordic platform for hair, beauty, and wellness businesses, saw many of its customers struggle to secure funding with long approval times and frequent rejections.

With Adyen Capital, Timma allowed merchants to access pre-approved financing directly on its platform. The setup took a single developer just a few hours, and today nearly 3,000 merchants in Finland use financial services via Timma. 

Adyen Capital has helped businesses expand locations, invest in equipment, and strengthened Timma’s position as a one-stop shop for its customers.

Baemingo and Adyen Capital are redefining funding for hospitality

Baemingo, a Nordic platform offering management and payment solutions for restaurants, recognized that many customers struggled with seasonal cash flow gaps that impacted staffing and day-to-day operations.

After integrating Adyen Capital in just a few days, restaurants that use Baemingo  have access to fast financing directly on the platform. The solution has improved customer retention, strengthened platform loyalty, and driven strong adoption.

Fresha drives loyalty with embedded lending

Fresha, a global marketplace for beauty, wellness, and self-care businesses, recognized that salon owners needed faster access to funding without the hassle of managing multiple tools or lengthy application processes.

After rolling out Adyen Capital across seven markets, Fresha surpassed $5.5 million in issued loans and achieved adoption from more than 10% of eligible users. The product has become a powerful driver of customer loyalty, with 89% of borrowers returning for a second loan.

Adyen Capital allows SaaS platforms to offer proactive, pre-approved embedded lending directly to their users through a single integration.  

Platforms can go to market in a matter of days or weeks using Adyen's pre-built, low-code UI components, eliminating the need for heavy backend development.

Unlike third-party lenders that require users to click out of the platform or complete new KYC/open banking steps, Adyen Capital is natively embedded in the existing funds flow.

Here is the step-by-step process of how funds from embedded lending are typically distributed and paid with Adyen:

1. Proactive risk assessments: Based on historical transaction data flowing the embedded lending solution automatically pre-assess a user's eligibility for funding and shows cash advance offers based on historic payments data.

2. Distribute funds within minutes: The funds are transferred in minutes, allowing for instant access to funds.

3. Automated repayments: Repayments are automatically collected from incoming payments.

Embedded lending removes the friction of traditional loans and aligns the repayment process directly with the business's natural cash flow.

Because Adyen holds a global banking license, we act as the lender of record and absorb 100% of the credit risk and compliance. Platforms simply earn a new revenue stream without taking on any liability.

Ready to transform your platform into a comprehensive financial ecosystem? Connect with our team to explore how our embedded finance solutions can drive growth for your business and your users. 

• Embedded lending integrates financing products directly into non-financial platforms, offering easy access to capital.

• Funding decisions are based on real-time transaction data rather than traditional, slow credit checks.

• Repayments are typically automated as a percentage of daily sales, aligning perfectly with a business's natural cash flow.

• Platforms benefit from increased user retention, enhanced loyalty, and new monetization opportunities without assuming credit risk.