All lines of credit are issued by Celtic Bank. All lines of credit and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice. Lines of credit are governed by the Line of Credit Agreement and Parafin’s Privacy Policy. Bank transfers are subject to review.
Running a small business often means juggling essential expenses with unpredictable cash flow. Payroll comes due before sales hit the bank. Inventory has to be purchased upfront to prepare for demand. Rent, advertising, and equipment costs don’t wait. Traditional financing is slow, complicated, and rarely built for these realities.
That’s why we built Pay Over Time, a new way for small businesses to defer payment on essential expenses, such as inventory, equipment, advertising, and rent. Businesses can access it directly at the point of need—whether at checkout, on invoices, or during payroll runs. The product is launching first with Gusto as a payroll line of credit and will soon expand into additional categories.
Small businesses are the backbone of the economy, yet they continue to face unnecessary friction when accessing financing. Traditional financing options are slow, complicated and not designed for the realities of running a business. Unlike consumers, small businesses don’t have a robust credit score, making real-time underwriting difficult. As a result, even essential expenses like payroll, inventory, equipment, and advertising, can be hard to finance when cash is tight.
Our mission is to make financing more inclusive and available where businesses operate. Through our existing capital products, we’ve already funded more than 35,000 businesses.1 Pay Over Time expands this reach by embedding credit into platforms where everyday purchases already happen.
With Pay Over Time, businesses benefit from:
Historically, it’s been almost impossible to underwrite small businesses in real time. Credit files are incomplete and raw bank data is messy and difficult to interpret. Traditional systems weren’t built to make sense of this data at speed, which left small businesses waiting or excluded altogether.
Pay Over Time changes that with AI-driven underwriting. Our proprietary models built on top of large language models (LLMs) turn thousands of raw transactions into a clear picture of business health. That means we can identify revenue patterns, obligations, and repayment ability in real time, delivering credit decisions in as little as 10 seconds.
Our models learn and improve with every transaction, delivering 99% accuracy on high-priority categories. Because this approach relies on banking activity rather than complex partner integrations, platforms can embed Pay Over Time with minimal lift while we manage underwriting, servicing, and compliance behind the scenes.
For businesses, Pay Over Time means access to credit when and where it’s needed. For platforms, it offers a powerful growth lever:
As Vineet Goel, Chief Product and Technology Officer and Co-founder of Parafin, explains:
“By harnessing large language models and layering our own proprietary models on top, we can assess the financial profile of businesses in real time and deliver credit decisions with low latency, all while maintaining high approval rates. Pay Over Time empowers platforms to support their customers at the exact moment of purchase, payment, or payroll. With this launch, we’re just getting started on building a comprehensive suite of financial solutions designed for speed, scale, and the realities of small business financing.”
We’ve seen strong reception since our launch, securing premier partnerships that extend Pay Over Time into a variety of use cases, such as:
These early wins demonstrate both the flexibility of the product and the demand from platforms to offer financing that fits their customers’ needs.
Together with our existing capital and credit solutions, Pay Over Time makes our embedded financing suite more complete than ever. Whether managing everyday expenses or funding long-term investments, businesses can now access the right type of financing at the right time.
Looking ahead, we’re continuing to expand data sources and AI models behind our underwriting so that financing becomes even faster, more accurate, and available across more use cases.
If you’re a platform where businesses make any expense, such as an inventory supplier, advertising platform, or bill pay portal, Pay Over Time gives you a powerful way to deepen relationships with business customers while unlocking higher transaction value and long-term growth.
Learn more about Pay Over Time and how to bring it to your platform.
1 Represents the number of business customers who received financing from Parafin and the cumulative origination volume from inception through September 2025.
Disclosure
All lines of credit are issued by Celtic Bank. All lines of credit and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice. Lines of credit are governed by the Line of Credit Agreement and Parafin’s Privacy Policy. Bank transfers are subject to review.
