Lendica and EBizCharge have partnered to launch an embedded business credit solution for U.S. small and medium-sized businesses (SMBs).
The partnership brings together Lendica’s embedded artificial intelligence (AI) lending capabilities and EBizChange’s payments solutions platform, the companies said in a press release on Tuesday (April 16).
Through the new service, called iBranch, businesses using the EBizCharge platform can borrow money from Lendica, according to a press release.
“With iBranch, we are adding financial power to our platform, allowing our customers to obtain credit without leaving the EBizCharge platform,” said Matt Rogers, vice president of strategic alliances at EBizCharge, in a press release.
This integration of payments and finance is designed to help businesses streamline operations, improve overall efficiency, and grow and scale faster, the release said.
The solution also capitalizes on the growing trend of offering embedded loans as a way to meet the credit needs of SMEs. Embedded commercial loan originations are expected to increase by 125% annually, according to the release.
For banks and non-bank lenders, Lendica’s AI-driven credit underwriting processes rich embedded data sets and helps provide instant decisions for transactions such as buy now, pay later (BNPL) and other cash management tools.
“Traditional small business credit is expensive, with borrowers paying an average of 61% APR,” Lendica CEO and co-founder Jared Shulman said in the release. “Our embedded loan program can significantly lower interest rates for our customers, and we We are excited to bring this to market with a leader in the field.”
PYMNTS Intelligence found that logistics and wholesale trade are among the industries showing widespread interest in embedded finance.
According to PYMNTS Intelligence and Carat’s “Embedded Finance Ecosystem: Logistics and Wholesale Trade Edition,” demand for innovative features such as digital wallets, installment payments and BNPL is surging as businesses in the industry focus on optimizing embedded finance solutions. Fiserv Cooperation.
In another recent move, Lendica and CSG Forte said in January they had formed a strategic partnership to allow small and medium-sized businesses to borrow directly from software providers instead of traditional financial institutions.
CSG Forte is a customizable digital payments company that will bring an embedded lending model to its independent software vendor (ISV) partners and their merchants.
