How embedded capital helps small businesses grow, even when the economy slows

How embedded capital helps small businesses grow, even when the economy slows

With uncertainty rising and consumer spending tightening, SMBs are feeling the squeeze. When the cost of doing business goes up, access to working capital becomes critical to not only survive, but to grow through tough times. And our internal data shows that’s exactly what SMBs are doing. 

At Pipe, we’ve seen firsthand that access to flexible, embedded capital changes the trajectory of small businesses. It does more than help cover the bills during a slow month; it enables expansion, hiring, and bold moves that would otherwise stay on the back burner. And the proof is in the data. 

When customers Pipe their revenue with a Capital advance, they grow faster than identical companies who don’t advance. What does that mean? Let’s take a closer look.

The power of capital access

It’s easy to underestimate the impact of a small monthly lift in growth, but it compounds quickly. Our data shows that merchants who access capital through their pre-approved, embedded offers grow about 12% faster month-over-month than their peers who don’t.

The key here is the way growth is measured. Other capital providers talk about growth, but they often don’t show the actual impact of their product. When our data team dug into the numbers, they didn’t just look at growth, they looked at the difference in difference. In other words, they compared similar companies who were on the same growth trajectory before taking capital to ensure an apples to apples comparison. Then they looked at the difference in growth for companies taking a capital advance, compared to the control companies that chose not to advance. 

Over a year, that difference adds up to ~14% more total growth—not because of a one-time boost, but because capital enables them to act when opportunity strikes: to buy inventory early, take on larger contracts, or enter new markets with confidence. 

We’ve seen it play out again and again across industries, from coffee roasters and cleaning companies to online retailers and home service professionals. When capital is accessible, affordable, and easy to understand, SMBs say yes—and they grow faster.

Merchant stories in motion

What does it look like when SMBs have the access they need to overcome hurdles and take advantage of opportunities? It looks like this:

SAMOS e-Commerce Ltd

For SAMOS, a parcel delivery company serving small businesses shipping into the EU, Pipe capital helped them continue operating through a time of economic friction. With capital in hand, through our partners GoCardless, they were able to expand their marketing efforts and keep their logistics solution in front of customers navigating rising import costs and customs delays left behind by Brexit. That kind of consistency builds long-term customer trust and loyalty.

Valley Plumbing NW

When Valley Plumbing used Pipe Capital, embedded inside the Housecall Pro platform, to add a drain cleaning and inspection division, they weren’t just solving a short-term need, they were building a whole new revenue stream. Capital gave them the ability to invest in the equipment and services that would make their business more resilient, more profitable, and more scalable.

We’ve seen contractors scale hiring to meet seasonal demand, subscription platforms expand into new regions, and sellers launch new product lines, all because they had the flexibility to move when it mattered.

What makes Pipe different?

Not all embedded capital is created equal. We’ve designed our product to be as customer-friendly as it is powerful:

• Transparent terms with no hidden fees

• Fast access with no paperwork or credit score requirements

• Live, human support to help business owners understand their options

We know that small businesses don’t always have finance teams. They need capital that’s easy to understand and even easier to access.

That’s why we’ve built a solution that not only supports merchants, but builds trust with every transaction. Eligible SMBs on our partner platforms can see pre-approve offers based on their transaction history and accept the amount they need in just a few clicks without ever leaving the platform. And with our unique multi-draw functionality, they can come back for additional capital when the time is right (not when a lender says it’s time).

Fintech for the win/win

Offering embedded capital doesn’t just help merchants grow. It helps platforms deepen relationships, increase retention, and capture more revenue.

When your merchants grow, your platform grows with them. And when capital is built in, that growth becomes scalable, trackable, and sustainable.

With Pipe, platforms can:

• Launch capital programs with zero operational overhead

• Customize the experience to feel native to their software

• See higher adoption rates thanks to our merchant-first approach

Conclusion

In uncertain times, capital access becomes even more important. But it’s not just about who can get funded—it’s about how.

The platforms that offer embedded capital in a way that’s transparent, trusted, and easy to use will be the ones that help their merchants not just stay afloat, but scale.

At Pipe, we’re proud to power that kind of growth—for SMBs and the platforms that support them.

Want to offer capital that fuels merchant growth? Let’s talk.