Embedded lending makes it possible for users to access credit at the moment they need it. Instead of filling out long forms on a bank website, a user can apply for financing directly inside the product they are already using. This can include small loans, “buy now, pay later” options, or short-term credit for businesses.
Most companies offering embedded lending do not lend money themselves. They work with licensed lenders or fintech partners. These partners handle credit checks, regulations, interest rates, and repayment. The business focuses on making the process simple and smooth for the user.
Embedded lending is popular in e-commerce, marketplaces, gig-work apps, and B2B software. For example, an online store may offer installment payments at checkout. A marketplace may give sellers access to working-capital loans based on their sales activity. The goal is to give users quick financing without switching tools.
Overall, embedded lending makes credit easier to access, faster to apply for, and better integrated into everyday digital products.
Embedded lending helps users get financing quickly and helps businesses increase sales, improve customer loyalty, and offer more value without becoming a bank.
Fintech partners review financial data such as purchase history, sales activity, or account behavior. They use this information to make fast decisions about credit limits and risk. Because they see real activity inside the platform, they often have better data than traditional lenders.
Common options include buy now, pay later plans, short-term business loans, instant payouts, cash advances for gig workers, and credit lines inside software tools. Each product fits naturally into the user’s workflow.
Businesses see higher conversion rates, larger average purchase sizes, and stronger customer loyalty. For B2B platforms, embedded lending helps users manage cash flow and remain active on the platform. Companies earn a share of lending fees or interest through their financial partners.
A marketplace platform offers small businesses a short-term loan based on their sales history. The loan is approved inside the platform within minutes, and repayments come automatically from future sales.
FinFeedAPI’s Currencies API supports embedded lending systems by providing accurate exchange rates for cross-border loans, repayments, and multi-currency financing tools.
