3 steps to launch embedded financing in your product

Embedded financing allows software companies to offer working capital without building a capital product from scratch or managing the complexities of underwriting, risk analysis, and capital markets. They can stay balance-sheet light while generating profitable revenue for themselves and solving one of their customers’ biggest pain points (leading to reduced churn and a better customer experience).

As powerful a tool as embedded finance is, you may be wondering how easy it is to embed a financial product into your platform and how long it takes. Fortunately, the short answer is, easy and not long. Here’s how you can take action and take advantage of embedded financing in three straightforward steps:

Step 1: Assess the opportunity

Begin by evaluating the potential of embedded financing within your product. How many of your customers would qualify for financing? How large would their offers be? How many are likely to take those offers? This step lets you forecast potential revenue and build a compelling business case.​

At Pipe, here’s how Step 1 works in practice:

We ask partners to securely share aggregated and anonymized customer data—usually a few weeks ahead of launch. This lets us generate pre-approved, indicative offers for customers, which we use to size the opportunity before anything goes live.

With just a few fields—like transaction volume, tenure, and average revenue—we can estimate:

• What percentage of customers are likely to qualify

• How much capital they might receive

• How much total volume your embedded capital offering could originate

This process also helps improve customer experience down the line. By using pre-approved language and personalized offer amounts, we see stronger engagement, higher click-throughs, and fewer drop-offs. And because these customers are already pre-approved based on transaction data, they’re very unlikely to hear “no” later on (barring a fraud or compliance issue)

Opportunity sizing doesn’t just give you a forecast—it gives you confidence.

Step 2: Choose an integration option

Selecting the right integration approach is essential for balancing speed, engineering resources, and user experience. Your decision typically hinges on how quickly you want to launch and the depth of integration you're aiming for.

1. Hosted integration: A hosted integration is the fastest route to launch embedded financing in your product, ideal if you want minimal engineering effort and a streamlined deployment. In this model, your provider (like Pipe) manages the user experience and technical maintenance, significantly reducing your internal resource requirements.

• Benefits:

  • Rapid launch—often within just a few weeks

  • Minimal engineering overhead

  • Immediate scalability and support

  • Easy updates and low maintenance

• Ideal for:

  • Companies prioritizing speed-to-market

  • Teams with limited engineering resources

  • Businesses looking to validate embedded finance concepts quickly

2. Fully embedded UI: Fully embedded integrations allow your business to deliver a seamless, white-labeled financial experience where customers never leave your product. Although this approach requires more upfront engineering resources, it creates a more native experience, with the entire process embedded within your product.

• Benefits:

  • Seamless, branded user journey

  • Greater control over UX and branding

• Ideal for:

  • Businesses looking to deeply integrate finance as a core feature set of their platform

Pipe's integration support: No matter which option you choose, Pipe supports your integration process end-to-end, offering:

• Dedicated implementation team: Hands-on guidance to ensure smooth integration, rapid troubleshooting, and optimal results.

• Clear technical documentation and API support: Our developer portal provides detailed resources that simplify technical implementation.

Ongoing Partnership and Optimization: Continuous support to help you optimize adoption, usage, and results.

Step 3: Plan your launch

Once you’ve sized the opportunity, it’s time to set your launch up for success.

Like any product launch, it should be intentional and well planned. The only difference is, you didn't have to build a new product from scratch to launch one. 

You’ll want to think through:

• How you’ll introduce the offer: Will it appear in-product? Through email? Both?

• Which customer segments to prioritize: Are you launching to everyone at once or testing with a smaller subset?

• Defining success: What key metrics do you want to monitor and what does a successful launch look like to you?

At Pipe, here’s how Step 2 looks in practice:

We support our partners through a structured go-to-market plan that’s designed to drive early engagement and long-term success. That means more than just flipping a switch—we help you build a full campaign around your capital launch.

Together, we’ll define:

• Who to launch to first: Test appetite for capital with a smaller cohort, or roll out to your entire customer base to maximize the impact of your launch.

• What channels to use: Deliver personalized, pre-approved offers to your customers strategically, based on how they engage with you and where they spend their time inside your product.

• How to talk about capital: From email templates and white-labeled content to support creating a big press moment, we help our partners maximize the opportunity a launch creates.

The result? Customers feel confident in what they’re being offered and are more likely to engage right away. Our partners see outstanding activation rates—well above industry benchmarks—and highly satisfied NPS scores (an average of 77 compared to 44 for financial services overall).

This isn’t a generic rollout. It’s a capital launch plan tailored to your customers and your product.

The bottom line: Embedded capital is more than a feature—it’s a growth engine.

When done right, it helps your customers grow faster and run smarter. It deepens trust, drives engagement, and turns your platform into an indispensable partner in their success.

Pipe’s team works hand-in-hand with our partners to make embedded capital feel like a seamless part of your product. That means aligning the capital experience to your UX, enabling data-driven pre-approvals, and supporting go-to-market efforts from day one.

Because when your customers win, you do too.

Frequently Asked Questions (FAQs)

Q1: What is embedded capital? Embedded capital is a type of embedded finance that gives businesses access to working capital—like advances or loans—directly within a software platform. Instead of applying through a bank, users receive funding offers where they already manage their business, based on real-time data.

Q2: How is embedded capital different from a traditional loan? Embedded capital offers faster, more accessible funding than traditional loans. It uses real-time business data instead of paperwork or credit scores, so businesses can access pre-approved capital quickly—without long applications, delays, or credit checks.

Q3: What are the benefits of embedded capital for platforms? SaaS platforms that offer embedded capital can unlock new revenue, improve user retention, and deepen customer trust. It positions the platform as a financial ally—helping customers grow while driving more engagement and lifetime value.

Q4: Is embedded capital a good fit for small businesses? Yes—embedded capital is ideal for small businesses that may not qualify for traditional credit. It uses real-time data, not just credit scores, making funding more accessible to microbusinesses and underserved entrepreneurs.

Q5: How can platforms implement embedded capital and stay compliant? To implement embedded capital and ensure compliance, partner with a provider like Pipe. We handle compliance, underwriting, and capital markets, while supporting your go-to-market strategy and integration. That means faster time to market—without regulatory risk.

Looking for a turnkey embedded capital solution? Explore how Pipe’s embedded finance platform can help your business scale effortlessly.