Embedded financing is more than just buzzwords; it's a dynamic game-changer for platforms looking to enhance their user offerings and open up new revenue streams. By embedding financial services into your platform, you can deliver a streamlined and more discoverable experience, leading to higher adoption. This enables your merchants to grow, increasing their satisfaction and keeping them on your platform.
To achieve this, platforms have to choose a provider that can meet their needs. Here, we'll explore questions that will guide you in making an informed decision, and how we answer those questions.
Are merchants satisfied with their financing experience?
Understanding how merchants perceive their experience with an embedded financing provider is crucial. Positive sentiment translates to stronger loyalty, and more revenue for your business.
Merchants give us an NPS score of 84, far exceeding the financial services industry average of 44. Our repeat rate is 85%, indicating merchants are so satisfied that they’re choosing to return for additional financial services. Moreover, 96% of merchants report an improved perception of the platform as a result of their capital experience.
A major financing barrier for many SMBs is slow application processes. We offer a highly intuitive and exceptionally fast experience, making it easy for merchants to apply for capital. Our simple application coupled with fast funding means most approved merchants apply and get funds in 1-2 business days. The rapid turnaround time ensures that merchants have access to the capital they need precisely when they need it.
Underwriting strikes a balance between risk and reward, and is an essential component in sustaining a robust financial services program. It undertakes key tasks, such as evaluating the financial strength of the borrower, determining suitable costs, adhering to regulatory requirements, and minimizing losses through early detection of possible problems.
We do not ask for credit scores, collateral, or other common requirements. Instead, we base eligibility primarily on recent sales history on your platforms. Other providers may use unreliable data points or require a ton of extra information from applicants, which inevitably frustrates merchants by slowing the process down.
The heart of our operation is data science. Unlike other providers who outsource this critical function, we conduct all underwriting in-house. Our team of highly skilled PhD data scientists use vast datasets and review our models regularly, ensuring every decision we make is backed by in-depth analysis.
The more data that a model has, the better. Our machine learning-led underwriting model uses billions of data points from millions of SMBs across all industries, ensuring that eligibility and offers are determined intelligently and precisely. Merchants only see offers that they’re qualified for, eliminating potential dissatisfaction from rejection or unsuitable offers, as well as reducing loss rates and improving overall program health.
Moreover, a larger data pool also means that we have the ability to conduct experiments to improve the merchant experience. We can confidently test offer sizes, eligibility, pricing, and other factors to ensure we provide the best offers to your merchants.
Choosing the right embedded financing provider is a significant decision for platforms looking to enhance their offerings and user experience. By asking the right questions, platforms can ensure they work with partners that align with their goals and deliver exceptional service.
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