How Embedded Capital Helps SaaS Platforms Generate Revenue and Increase Retention 

What is Embedded Capital? 

Embedded capital is a modern approach to small business financing—one that puts funding directly in the hands of merchants through the software platforms they already use. Rather than applying for a loan through a traditional bank, a business can receive a working capital offer within their vertical SaaS platform, accept it in just a few clicks, and receive funds fast. Repayment is just as seamless, often tied to a percentage of daily card sales. 

This model is part of a broader shift known as embedded finance, where financial services—like payments, capital, insurance, and more—are integrated into non-financial platforms. What started with embedded payments has rapidly expanded, and now financing is emerging as one of the most valuable and accessible tools software providers can offer to their merchant base. 

Vertical SaaS providers are uniquely positioned to lead this evolution. With built-in visibility into transaction volume and day-to-day business activity, they’re in a prime spot to help pre-qualify merchants, deliver funding offers at the right time, and serve as a trusted channel for financial tools. For software companies looking to deepen platform engagement and drive new revenue, embedded capital represents a powerful, timely opportunity. 

Who is Embedded Capital For? 

Embedded capital is built for vertical SaaS providers that serve small to mid-sized businesses across a variety of industries. If your platform helps merchants manage day-to-day operations, process payments, or engage with customers, you’re in a prime position to offer embedded financing. 

These solutions are especially valuable for platforms with regular transaction visibility and strong merchant relationships—making it easy to surface relevant funding offers at the right time. Whether your software supports service providers, healthcare professionals, retailers, or appointment-based businesses, embedded capital can be a meaningful value-add. 

Typical merchant use cases include: 

For SaaS providers, it’s not just about offering capital—it’s about enhancing your product, strengthening merchant loyalty, and unlocking new revenue streams. Embedded capital turns your platform into more than a tool—it becomes a true growth partner for your customers and provides a new revenue opportunity for you. 

How Does Embedded Capital Work? 

Embedded capital is designed to make business financing fast, simple, and accessible—without merchants ever leaving your platform. It works by leveraging the transaction data already flowing through your software to pre-qualify merchants and offer capital directly within their existing workflow. 

Here’s how the process typically works: 

What makes this model especially attractive is that the SaaS provider doesn’t have to become a lender or handle any financial servicing. We manage the capital, compliance, risk, and repayment—while your platform delivers the experience and earns a share of the revenue. 

This streamlined approach removes friction for merchants and makes it easy for SaaS providers to add meaningful value without development burden or regulatory complexity. 

Benefits of Embedded Capital for Vertical SaaS Providers 

Embedded capital isn’t just a win for merchants—it’s a strategic advantage for vertical SaaS platforms. By integrating capital offers into your software, you can unlock a new revenue stream, increase product stickiness, and deepen your relationship with merchants—all without taking on additional operational or regulatory burden. 

And with Clearent’s low-code embedded capital solution, getting started is easier than ever. Minimal development work is required, allowing your team to quickly launch and deliver financing to merchants and as a result, faster time to revenue for your platform. 

Here’s what’s in it for your platform: 

In a competitive SaaS landscape, embedded capital gives you a clear edge. It allows you to differentiate your offering, deliver more value to customers, and capture additional revenue—all while strengthening your platform’s position at the center of your merchants’ business operations. 

Benefits of Embedded Capital for Merchants 

For small and mid-sized businesses, access to fast, flexible capital can make all the difference—especially when traditional financing options are slow, restrictive, or out of reach. Embedded capital gives merchants a simpler, more accessible way to get the funds they need, directly within the software they already use and trust. 

Here are the key benefits for merchants: 

By removing barriers and simplifying the process, embedded capital helps merchants stay focused on running and growing their business—not chasing funding. 

Real-World Embedded Capital Use Cases 

Embedded capital meets merchants where they are—inside the platforms they rely on every day—and provides financing that’s tailored to their real business needs. While the use cases vary across industries, the impact is consistent: fast access to funds that help businesses grow, adapt, and thrive. 

Here are just a few examples of how merchants use embedded capital: 

These examples reflect a common theme: embedded capital is most powerful when it’s timely, contextual, and easy to access. By integrating financing directly into your software, you help your customers make faster decisions, capture new opportunities, and stay resilient in a changing market. 

Why Embedded Capital is Critical Now? 

Small businesses are facing more pressure than ever. Access to traditional financing has tightened, approval times are slow, and often times personal guarantees or strong credit scores are a requirement—barriers that leave many deserving businesses without options. At the same time, the need for fast, flexible capital hasn’t gone away. In fact, it’s only grown. 

That’s where embedded capital comes in. 

By offering capital directly through your platform, you meet merchants at the point of need—without friction, paperwork, or delay. It’s financing that’s based on real-time business performance, not red tape. And in today’s economic environment, that speed and accessibility can make a critical difference. 

For SaaS platforms, the timing is just as compelling. As competition increases and merchants demand more value from their software providers, embedded financial tools are becoming key differentiators. Embedded capital helps you stand out, strengthen your product offering, and grow revenue—all without building financial infrastructure from scratch. 

The opportunity isn’t just growing—it’s here. Platforms that move now can create a meaningful competitive advantage and deliver real impact to their customers. 

Wrap Up: Embedded Capital as a Growth Lever 

Embedded capital is more than just a financing feature—it’s a powerful strategy for SaaS platforms looking to deepen merchant relationships, enhance their value proposition, and unlock new revenue opportunities. 

By offering fast, flexible funding directly within your platform, you empower your customers to grow their businesses without the friction of traditional financing. At the same time, you create a stickier, more indispensable product experience that drives retention and long-term platform engagement. 

And the best part? You don’t have to handle any of the heavy lifting. With our embedded capital solution, we handle the underwriting, servicing, compliance, and capital—so you can focus on delivering value and scaling your business. 

Ready to explore embedded capital for your platform? 
Get in touch with our team to see how easy it is to get started. 

Parafin disclosure: All loans are issued by Celtic Bank. All loans and offers are subject to credit approval, identity verification, and are subject to periodic review and may change without notice. Bank transfers are subject to review.