What is embedded lending?
Embedded lending lets your users apply for business funding directly inside your platform, without visiting a bank or lender website. The loan is fulfilled by an external lender (or matched from a panel of 50+), while your platform provides the interface and earns revenue share on every funded deal. Rather than losing the user to a third-party bank website, your platform becomes the entry point for funding and earns a revenue share on every deal that completes.
This model is already powering lending inside accounting software (Xero, Sage, QuickBooks), payment platforms (Shopify Capital, Stripe Capital) and marketplaces (Amazon Lending) across the UK. Fundably enables platforms to go live with a multi-lender embedded model in under 48 hours via iFrame, Web Component or REST API.
An everyday example
A small business owner uses accounting software to manage their books. At the end of the month, their software shows a cash flow forecast with a shortfall in three months.
Without embedded lending, the owner might:
- Recognise the funding gap
- Google “business loans UK”
- Apply to three or four lenders directly
- Wait weeks for decisions
With embedded lending inside the accounting software:
- The software flags the cash flow gap and displays a “Get funding” option
- The owner completes a short in-platform application (pre-filled with their accounting data)
- The platform matches them to appropriate lenders from a broker panel
- They receive offers within hours, without leaving the software
The accounting software earns a revenue share. The business gets funded faster. The lender gets a qualified applicant with verified financial data.
How embedded lending differs from a bank partnership
Traditional business banking partnerships (like Barclays’ Loan Referral Service) route declined customers to alternative lenders. The experience typically involves redirecting the user to a third-party website.
Embedded lending keeps the user inside the platform throughout the application and matches them to multiple potential lenders rather than one. The key differences:
| Bank referral | Embedded lending | |
|---|---|---|
| User experience | Redirect to external site | In-platform, seamless |
| Lender options | Typically 1 | 1–50+ depending on model |
| Platform revenue | Commission on referred deals | Revenue share per funded deal |
| Platform control | Minimal | Full white-label |
| Time to go live | Months | Days (with iFrame integration) |
Who is doing this?
Embedded lending is already integrated into several major platforms:
- Accounting software (e.g. Xero with Funding Options; Sage with Liberis; QuickBooks with Funding Circle)
- Payment platforms (e.g. Shopify Capital, Square Loans, Stripe Capital, all single-lender models)
- Marketplaces (e.g. Amazon Lending, where sellers can apply within Seller Central)
These are largely single-lender models, often using the platform’s own payment data as the underwriting input. The multi-lender model, matching across a 50+ panel, is newer and produces higher approval rates across a more diverse user base.
The revenue model for platforms
Platforms typically earn in one of two ways:
- Revenue share: a percentage of the arrangement fee or broker fee on each funded deal (the more common model for embedded broker integrations)
- Net interest margin share: a share of interest income (more common for platforms with balance-sheet lending partners)
For broker-model embedded lending (like Fundably), revenue share is up to 30% per funded deal. There are no setup fees or monthly costs.
Integration options
Modern embedded lending is typically available via:
- iFrame: zero-code integration; works in any platform regardless of tech stack
- Web Component: pre-built, brand-configurable component for React, Vue and other modern front-end stacks
- REST API: full custom build with maximum UX control
With Fundably’s iFrame, a platform can go live in under 48 hours. See the full integration guide here.
Ready to add embedded lending to your platform? Book a technical demo with the Fundably platform team to discuss the right integration for your product.