Lendica and EBizCharge have partnered to launch an embedded business credit solution for small and medium-sized businesses (SMBs) in the United States.
The partnership will integrate Lendica's embedded artificial intelligence (AI) lending capabilities with EBizChange's platform for payment solutions, the companies said in a press release on Tuesday (April 16).
The new service, called iBranch, will allow companies using the EBizCharge platform to borrow funds from Rendica, according to the release.
“iBranch adds financial power to our platform, allowing customers to access credit without leaving the EBizCharge platform,” Matt Rogers, vice president of strategic alliances at EBizCharge, said in a release. Ta.
This payments and finance integration is aimed at helping businesses streamline their operations, improve overall efficiency, and grow and expand faster, according to the release.
The solution also addresses the growing trend of offering embedded financing as a way to meet the credit needs of small and medium-sized businesses. Embedded business loan originations are expected to grow 125% year over year, according to the release.
For banks and non-bank lenders, Lendica's AI-driven credit underwriting processes rich embedded data sets to improve transactions such as buy now, pay later (BNPL) and other cash management tools, according to the release. It helps provide instant decision-making.
“Traditional small business credit is very expensive, with the average borrower paying an annualized interest rate of 61%,” Rendica co-founder and CEO Jared Shulman said in a release. . “Our built-in lending programs allow us to significantly lower interest rates for our customers, and we are excited to bring them to market with leaders in this space.”
PYMNTS Intelligence found that one sector showing widespread interest in embedded finance is logistics and wholesale trade.
Demand for innovative features such as digital wallets, installment payments, and BNPL increases as companies in the space focus on optimizing embedded finance solutions, according to PYMNTS Intelligence and Carat's The Embedded Finance Ecosystem: Logistics and Wholesale Trade Edition is rapidly increasing. From the Fiserv collaboration.
In another recent move, Rendica and CSG Forte announced in January that they had entered into a strategic partnership that will allow small and medium-sized businesses to borrow money directly from their software vendors rather than traditional financial institutions.
Customizable digital payments company CSG Forte brings an embedded lending model to independent software vendor (ISV) partners and their merchants.
