Embedded lending
Loans or credit offered inside a non-lender's app or checkout, such as point-of-sale financing, with a bank or licensed lender making the loan.
What embedded lending is
Embedded lending is a form of embedded finance in which a platform offers credit at the moment customers need it, such as at checkout. The platform designs the experience, while a bank or licensed lender underwrites, originates and funds the loans, sometimes selling them on to investors.
How it works
The borrower applies without leaving the platform. Behind the scenes, the lending partner applies its credit policy and compliance checks, makes the loan and handles the money movement. The platform runs the borrower experience throughout.
- 01 · APPLY The borrower applies inside the platform's app, website or checkout.
- 02 · UNDERWRITE The lending partner checks the application against its credit and compliance rules.
- 03 · FUND Approved loans are funded to the borrower or merchant, then serviced or sold.
When businesses use it
- Buy now, pay later and installment plans at online and in-store checkout
- Working capital for small businesses inside commerce and accounting software
- Financing for home improvement, solar or auto purchases at the point of sale
- Lines of credit offered inside consumer finance apps
Cross River originates loans for lending programs through an API-based platform covering application import, underwriting validation and funding, with options to sell loans to investors. Programs range from point-of-sale installment loans to small business lending. See marketplace lending at Cross River.