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Priority is a leading payments and banking solutions provider that helps businesses take and make payments and monetize payment networks.

They’re on a mission to simplify how businesses handle their finances. They also recognize how critical capital access is to the health and survival of small businesses. “We call it unified commerce, where payments, banking, and payables are all connected on a single platform. A big part of that is giving businesses access to capital when they need it,” said Thomas Priore, Chairman and CEO of Priority.

To make that quick, flexible capital access a reality, they launched Priority Capital, powered by Pipe. After a successful pilot test, Priority implemented a full embedded UI integration within 7 days to power Priority Capital inside their payments ecosystem. This integration offers Priority businesses a straightforward, user-friendly path to obtaining the capital they need to grow, without the hassle of credit checks, high rates, or opaque terms.

“Our mission is to change how any size company manages their money, and offering our customers access to funding through Pipe is a seamless and powerful extension of that mission that will change how they conduct business. I am excited to work with Pipe to unlock growth for every entrepreneur who wants to build a great business," said Priore.

For businesses that use Priority, accessing capital has never been simpler. Pipe’s streamlined process allows merchants to get pre-approved based on their Priority transaction data, enabling them to request and receive funding in just a few steps directly through the MX™ Merchant dashboard. This approach not only democratizes access to capital but also aligns payment with the merchant's sales cycles, providing a truly flexible funding solution.

Priority businesses can now benefit from:

Expanding opportunities: launch your own capital offering

Pipe's vision extends beyond our collaboration with Priority. We're on a mission to empower platforms and their merchants with embedded capital solutions that are as flexible as they are accessible. Our infrastructure is designed to meet you where you are, offering seamless capital access to your merchants with just a few clicks, all while feeling native to your platform.

For platforms looking to enhance their offerings and for businesses in search of growth capital, the partnership between Pipe and Priority serves as a model for what's possible when technology and finance converge to support SMBs. Ready to unlock growth for your business through flexible funding? Schedule a demo with us today. 

Find out how Pipe's platform can be yours



The Embedded Capital Solution

With Pipe's embedded solution, Priority Capital is bringing simplified capital access to Priority merchants.

Pipe & Priority: Pioneering a New Frontier in Business Funding

Pipe & Priority: Pioneering a new frontier in business funding

Pipe and Priority partnering to empower businesses with flexible funding

Helping self-care businesses take care of themselves

Co-founders Matt Danna and Sean Stavropoulos started 

 as an appointment scheduling tool for salons, and it’s grown into a complete client experience platform, including scheduling, business management, automated email marketing, and reliable payment processing used by over 3,500 self-care businesses. Fueled by a deep understanding of the day-to-day needs of barbershop, salon, spa, and medspa owners, they identified one of the biggest gaps in the industry: access to working capital.

“For years, the self-care industry has been underserved by lenders who understand little to nothing about how these unique businesses work. Traditional small business loans have only been accessible to business owners who don't actually need them. It’s also no secret that the women- and minority-owned businesses that make up a significant portion of the self-care industry have long struggled to access the loans and lines of credit on which small businesses depend, ” said Matt Danna.

To help close this capital gap, they launched 

, powered by Pipe. Boulevard Capital lets self-care business owners access the capital they deserve based on what they’ve built. 

For Boulevard users, accessing capital has never been simpler. Pipe’s streamlined process allows them to get pre-approved based on their Boulevard transaction data, so they can access the capital they need without credit checks or lengthy financial histories. This approach not only democratizes access to capital but also aligns payment with the merchant's sales cycles, so they’re never stuck with a high fixed payment during a slow period.

By partnering with Pipe, Boulevard gives the self-care industry:

Expanding opportunities: launch capital in 

Boulevard is a great example of how vertically focused Payfacs and ISVs can bring capital access to industries that need it most. Pipe’s mission is to expand access to unbiased capital for SMBs. No one knows SMBs better than the vendors that serve them, and there’s no better place for them to access capital than the platforms they use to run their businesses every day. Pipe’s infrastructure is designed to embed seamlessly, offering capital access to your merchants with just a few clicks, all while feeling native to your platform.

Embedded capital solves the biggest problems SMBs face in almost any industry; access to working capital. Ready to unlock growth for your merchants, while also growing your GPV and increasing user loyalty? Schedule a demo with us today. 

Co-founders Matt Danna and Sean Stavropoulos started Boulevard as an appointment scheduling tool for salons.

Boulevard Capital Unbiased access for an underserved industry

Boulevard Capital: Unbiased access for an underserved industry

Pipe

In the fast-paced fintech landscape, strategic partnerships are crucial for fostering innovation and accelerating growth. With a focus on 

, Pipe distinguishes itself by offering a spectrum of partnership models, each designed to cater to the varying needs of its partners and their end-users. These models range from referral partnerships to deep integrations, illustrating Pipe's commitment to flexibility and mutual growth.

At the foundation of Pipe's partnership strategy lies the referral model. This approach is built on simplicity and accessibility, allowing partners to refer their clients to Pipe's capital solutions. It's a mutually beneficial arrangement where partners can enhance their service offerings without the need for direct integration. For businesses looking for quick and straightforward ways to provide additional value to their customers, the referral model offers an entry point into the world of embedded finance.

Pipe Hosted Approach with One Data API Integration

Moving a step further, Pipe offers a hosted approach through a single data API integration. This model is designed for partners seeking a balance between 

 and a seamless user experience. By leveraging pre-approved offers based on the partner's merchants’ data, this approach allows for a more 

personalized and streamlined service directly within Pipe's platform

. It's an efficient way to offer embedded capital solutions without full integration.

 aiming for the pinnacle of seamless integration, Pipe offers a comprehensive solution through deeper integration via SDKs and APIs. This model is tailored for platforms that prioritize a native experience for their users, embedding Pipe's 

 directly into the partner's ecosystem. It transforms the way capital is accessed, making it an integral part of the partner platform's workflow. This deep integration ensures that the end-users benefit from a frictionless experience, accessing capital as if it were a native feature of the platform they’re already using. While the technical demands of a full integration are a bit higher, our expert Product and Engineering team offers support every step of the way.

Through these strategic collaborations, Pipe not only improves financial access for small businesses but also enriches the ecosystems of its partners. For instance, a software platform for SMBs can integrate Pipe's embedded capital solutions to offer their users instant access to 

 without leaving the platform. This not only enhances the platform's value proposition but also supports the growth and sustainability of the businesses it serves.

Building Success Together: Pipe's Partnership-First Approach

Implementing these partnership models requires aligning strategic goals and managing technical integrations. However, Pipe's commitment to flexibility, combined with our technical support, ensures that these challenges are navigated successfully.

Pipe distinguishes itself from traditional funding sources by prioritizing a partnership-first approach rather than merely facilitating transactions. Unlike conventional lenders that may impose rigid terms and focus solely on profitability, Pipe collaborates closely with businesses to understand their unique challenges and opportunities. This collaborative approach ensures the capital solutions provided aren’t just tools for immediate needs but are part of a strategic framework designed to support long-term growth and success.

Whether through simple referrals, hosted solutions, or deep integrations, Pipe offers a capital funding model that caters to the unique needs of our partners. This flexibility not only fosters growth and innovation but also ensures that end-users have seamless access to the financial services they need. As the fintech landscape continues to evolve, we hope our collaborative model serves as a blueprint for how strategic partnerships can unlock new possibilities and drive the industry forward.

Interested to learn more? Watch the full conversation between Luke Voiles (CEO of Pipe) and Tom Priore (CEO of Priority) 

Three ways Payfacs and ISVs can partner with Pipe to quickly launch an embedded capital offering.

Three ways Payfacs and ISVs can partner with Pipe to quickly launch an embedded capital offering to support their merchants, grow GPV, and drive new revenue

Discover Pipe's Partnership Ecosystem

As the small business economy evolves, Payment Facilitators (Payfacs) are a crucial partner enabling seamless transactions across platforms. However, in an increasingly competitive marketplace, Payfacs must continuously seek innovative ways to enhance their value proposition and strengthen merchant loyalty. One strategy that’s gaining traction is the integration of 

—a move that promises not only to transform the Payfac ecosystem but also to improve merchant satisfaction and drive growth significantly.

The Value of Embedded Capital for Payfacs

 seamless integration of working capital within non-financial platforms

, allowing merchants to access funding directly through their existing payment processing systems. This innovative approach addresses a critical need among merchants for timely access to working capital, enhancing the overall service offering of Payfacs. By embedding capital solutions into their platforms, Payfacs can provide more comprehensive financial support, making it easier for merchants to manage cash flow and fuel growth without having to look elsewhere.

Enhancing Merchant Satisfaction and Loyalty

Direct access to embedded capital addresses one of the most common financial pain points for merchants: the need for 

. Whether it's to stock up on inventory before a peak season or to bridge a cash flow gap, merchants often find themselves in need of short-term funding. Traditional lending channels can be slow, requiring extensive paperwork and long waiting periods. Embedded capital offers a swift, streamlined alternative, significantly enhancing merchant satisfaction.

Moreover, by providing these essential financial services, Payfacs can foster greater loyalty among their merchant base. Merchants are more likely to stick with a Payfac that not only processes their transactions but also supports their growth and financial health. 

Offering embedded capital can serve as a powerful differentiator for Payfacs in a crowded market. Not only does it add value for merchants, but it also opens new revenue streams for Payfacs themselves. As merchants leverage embedded capital to expand their operations, they're likely to process more transactions and generate higher volumes, in turn, increasing the processing revenues for Payfacs, along with a share of fees generated from the capital product.

Operational Efficiency and Risk Management

By leveraging the vast amounts of data that Payfacs already collect, implementing embedded capital can be streamlined and efficient. This data can be used to assess whether merchants are qualified for a working capital offer, and 

the offers are tailored to the merchant's financial health

. This process is dynamic, generating new working capital offers as merchants grow, all while minimizing the risk of defaults by aligning payments with the merchant's cash flow.

Navigating Challenges and Maximizing Opportunities

While integrating embedded capital presents numerous opportunities, it also comes with challenges, such as regulatory compliance and the complexities of financial product integration. However, these challenges can be navigated with careful planning, leveraging 

partnerships with fintech companies like Pipe

, and employing robust technology solutions.

Embedded capital is set to transform Payment Facilitators, offering a strategic tool to enhance merchant services, drive growth, and differentiate in the market. By embracing this innovative approach, Payfacs can not only improve their value proposition but also foster deeper, more loyal relationships with their merchants.

As the digital economy continues to evolve, Payfacs that are quick to integrate embedded capital into their platforms will be well-positioned to lead the way, offering a comprehensive, supportive financial ecosystem that empowers merchants to thrive.

Interested to learn more? Watch the full conversation between 

Find out how embedded capital can help payment facilitators build merchant loyalty, grow GPV, and drive revenue, while managing their risks.

Find out how embedded capital can help payment facilitators build merchant loyalty, grow GPV, and drive revenue, while managing their risks and resources

Transforming Payfac Ecosystems with Embedded Capital

 marks the evolution from traditional, standalone financial services to their integration within platforms and services that businesses and merchants use daily. Initially, financial solutions were broad, one-size-fits-all tools. However, as technology advanced, these solutions began to specialize, catering to the unique needs of specific industries or verticals. This transition from horizontal to vertical-specific tools has significantly enhanced the customer experience by providing more tailored, relevant, and efficient tools. It’s also made embedded financing much more powerful.

Embedded Finance and Its Impact on Small Businesses

For small businesses, embedded finance has been a game changer. By 

integrating embedded capital solutions directly into business platforms

, companies gain direct access to capital, without ever leaving their operational ecosystem. This 

 empowers businesses to focus more on growth and less on funding logistics.

For example, think about a coffee shop that, two decades ago, would manage transactions, payroll, and accounting through cumbersome, manual processes. Today, that same coffee shop can leverage specialized tools that handle all of this within a single platform. Now, with embedded finance, they can easily access working capital from within that same platform, with no need to compile financial statements and go to the bank.

The concept of unified commerce is emerging, where all facets of financial services—payments, banking, access to capital—are seamlessly integrated into a single platform. This unified approach makes financial management more intuitive and less time-consuming for business owners, who are often time-strapped and wearing multiple hats.

For small businesses, this could mean having a single dashboard that manages everything from inventory purchases to employee payroll, with embedded financial services like access to capital or payment processing. This level of integration not only streamlines operations but also provides businesses with a holistic view of their financial health, enabling better decision-making and fostering growth.

The evolution of embedded finance represents a significant leap forward in the way businesses interact with financial services. By breaking down the barriers between financial and operational platforms, embedded finance offers a more integrated, efficient, and accessible financial ecosystem for businesses of all sizes.

 continue to lead the way, driving innovations that promise to further transform the business landscape. In today’s market, staying ahead means embracing the integrated, seamless, and efficient solutions embedded capital provides.

This blog was inspired by the conversation between 

Payments, banking, and access to capital are coming together on unified platforms.

Payments, banking, and access to capital are coming together on unified platforms. See how embedded finance makes this possible in a whole new way. 

The Evolution of Embedded Finance Towards Unified Commerce

The Evolution of Embedded Finance: A Leap Towards Unified Commerce

Independent Software Vendors (ISVs) are at the forefront of technological innovation, crafting solutions that not only meet but anticipate the needs of businesses across industries. As these ISVs seek to provide more value and deepen user engagement, embedded finance emerges as a key area of opportunity. 

Integrating financial services—particularly access to working capital

—into software platforms can transform user experiences, open new revenue streams, and ensure platform stickiness.

 refers to integrating financial services within non-financial platforms. For ISVs, this means offering users access to financial products—such as capital, lending, payment processing, and insurance—directly within their software. This integration creates a seamless experience for users, who can access financial tools without leaving the platform, enhancing efficiency and user satisfaction.

Partnering with Embedded Capital Providers

For ISVs interested in integrating  a working capital model for embedded finance, various partnership models exist. These range from referral agreements with financial institutions to deeper tech-enabled collaborations involving API integrations. Pipe offers flexible embedded capital partnership models that allow ISVs to choose the level of integration that best suits their platform and user needs. Through these partnerships, ISVs can provide embedded capital solutions that appear native to their platforms, enhancing the user experience without the need to develop complex financial services in-house.

Embedded finance within ISV platforms can be transformative. For example, business management software integrating embedded capital can enable its users to apply for and manage a loan or advance directly through the software, using data already within the system to streamline the application process. This not only simplifies access to capital for businesses but also strengthens the software's role as an indispensable tool for business operations.

Despite the clear benefits, ISVs may have concerns about implementing embedded finance, from technical integration challenges to maintaining user trust. Collaborating with established fintech partners like Pipe can alleviate these concerns. Pipe's experience and technology enable smooth integration of financial services, ensuring compliance, data security, and a seamless user experience.

For ISVs looking to future-proof their platforms and drive growth, embedding financial services offer a compelling opportunity. By integrating working capital and other financial solutions, ISVs can enhance their platform's value, foster deeper user engagement, and tap into new revenue streams. 

Pipe’s embedded capital offering isn’t a loan; it’s an advance based on a company’s revenue. This allows a wide range of businesses to access capital quickly, with an approval process that’s much faster than typical for lenders. By embedding Pipe Capital into your software platform, you give your merchants easy access to funding, including pre-qualified offers based on first-party transaction data.

Find out how ISVs can gain a strategic advantage by offering embedded financing and how simple it can be to implement

ISVs and the Future of Embedded Finance

Innovating at the Intersection: ISVs and the Future of Embedded Finance

Payment Facilitators (Payfacs) are constantly seeking innovative ways to enhance their offerings and add value for their merchants. Embedding financing options, like 

seamless integration of financial services

 that can increase merchant success and the growth of Payfacs themselves.

Embedded lending is the integration of lending services directly into the platforms that businesses already use for their daily operations. This approach eliminates the need for businesses to seek external financing solutions, providing them with fast, convenient access to capital. For Payfacs, embedded lending represents an opportunity to deepen relationships with merchants by addressing one of their most critical needs: access to funding.

Integrating an embedded capital product requires a strategic approach. Payfacs can look to 

, like those used by Pipe, which range from simple referrals to deep API integrations. These models provide flexibility in how Payfacs can offer services, allowing for a tailored approach that meets the needs of both them and their merchants.

While the benefits are clear, Payfacs still need to consider challenges such as regulatory compliance and integration complexities. Partnering with experienced fintech companies like Pipe can mitigate these challenges. Pipe's partnership-first approach ensures that Payfacs can implement embedded capital solutions that are not only compliant but also seamlessly integrated into their existing platforms.

Pipe’s embedded capital offering isn’t a loan, it’s an advance based on a company’s revenue. This allows a wide range of businesses to access capital quickly, with an approval process that’s much faster than typical for traditional lenders. By embedding Pipe Capital into your software platform, you give your merchants easy access to funding, including pre-qualified offers based on first-party transaction data.

 offers a pathway for Payfacs to significantly enhance their value proposition, deepen merchant relationships, and drive mutual growth. By addressing the critical need for access to capital, Payfacs can empower their merchants to achieve their growth objectives, resulting in increased processing volumes and revenue. As the digital payment landscape continues to evolve, embedded capital stands out as a strategic advantage for Payfacs willing to embrace innovation and partnership opportunities.

Here's how embedded lending and other embedded capital offerings can help Payfacs drive growth.

Here's how embedded lending and other embedded capital offerings can help Payfacs drive growth and become even more essential to the merchants they serve.

Empowering Growth: How Payfacs Can Leverage Embedded Lending

Connect with Ben on LinkedIn to keep the conversation going.

Ben Goodyear

This article was originally published on 

For more than a decade, I’ve held key financial positions with Mailchimp, Visa, Intuit, and Pipe, with front-row seats to the inner workings of small and mid-sized businesses. During that time, not a day has gone by that I wasn’t immersed in data. But the way we leverage data is changing, and with it, hopefully, the way you look at your own business data. 

There’s a common misconception among companies of all sizes that CFOs are focused entirely on financial statements and 

be heads-down looking at that bottom line. But in today’s world, there’s more than one bottom line and more than one way to get there. We’re all looking for an edge—either a way to get ahead of the competition or a way to improve 

 performance—and I believe comprehensive performance data is the key to finding that edge. 

We live in a complex world, and the complexity is only going to keep accelerating. Where CFOs once really 

limited to things like financial statements for insights, we’re now connected to more data and potential to measure performance than ever before. We have data measuring every part of the customer experience, from acquisition to engagement, performance, and attrition, all at our fingertips. Not only that, but we also have smarter tools to help us analyze that data with the help of AI and machine learning. 

All of this leads to two major shifts for the modern CFO. First, inputs from so many different places can revolutionize the way we make decisions. Instead of waiting for data that is backward-looking, we have the potential to invest in near real-time information. To make the most of all this data, we 

stay connected with the tools and know-how to analyze it. Anything else is just asking to be left behind by the competition. 

Secondly, CFOs must become experts in more than just the dollar signs and contribute to the company more broadly. In a complex market where small businesses and large corporations manage across multiple sales channels, compete for talent, and make financial decisions to grow their business, the world is more centered around data than ever. If you can help drive smarter decisions across functions, you’ll add value our finance forefathers and mothers only dreamed of.

Most companies I talk to ask about the tools and processes to make data-driven decisions. Here are five steps I suggest to them, and to you, to get a handle on your data and make the most of it for your company: 

Gone are the days of making financially or analytically inclined employees among your last hires. It bears repeating that companies that fail to prioritize data will be left behind. You need to reflect that value in your hiring decisions and the tools you invest in. 

Hire data-savvy people early on and equip them with the technology to capture, see, and analyze data in the best way. This will result in high-quality, usable data that will move your company forward and lead to much better decision-making.  

 data out there, knowing where to focus is important. Make strategic choices about the metrics sacred to your sales and marketing funnel, customer satisfaction, and profitability. Once you know what to track, you can align your team around these numbers so everyone is on the same page. There’s nothing worse than monitoring metrics that don’t align with your goals or having your teams pour effort and time into work that moves the wrong needle. 

We all know that setting goals only helps if you track your progress. In the same way, monitoring key metrics in your data is only useful if you review them regularly. Determine the best frequency for these reviews and who needs to be involved and stick to that schedule. Remember, just because you have data does not mean you have to review it with your team every day. Give your data some time to bake so that your reviews hold real meaning.

With the right people on your team using the right tools, you can be confident that your data is accurate. This sets you free from doubt and lets you foster healthy debate around what to do about the data, not the data itself. This is an easy point to gloss over, but it’s key to the power of good data. With a shared understanding of what the numbers really measure, you can focus your time and attention on building strategies and taking action.  

Commit to action and track the progress 

All of these things move us toward an ultimate goal: a culture that embraces the discussion and evolution of strategy. All this data makes it possible to see shifts beneath the surface and, in some cases, even predict them before they arrive. Meaningful progress in our companies comes from embracing those shifts and taking committed action as a result. That’s how the data-driven CFO becomes a driver of results.

As CFOs, we sit in the perfect position to harness the power of data. We’re well-equipped to make analytical decisions based on hard numbers. Now we need to direct that analytical thinking to more than just the financials. With accurate, reliable data, we can contribute to the company in new and exciting ways that have an outsized impact on the bottom line and beyond. 

Discover how embedded lending can help Payfacs and ISVs grow faster and how alternatives like Pipe can help streamline the process

Unlocking Business Growth with Embedded Lending

How to unlock financial data as a growth tool, no matter your business size

For small businesses, access to capital is critical for growth and success. One option that small business owners are increasingly turning to for quick and nimble access to capital is a merchant cash advance (MCA). 

However, like any financial decision, there are pros and cons to consider before proceeding with this type of alternative funding. In this article, we’ll dive into merchant cash advances to help you determine if they’re the right choice for your business.

Understanding the merchant cash advance 

Before digging into the pros and cons, let's first understand what a merchant cash advance is. Simply put, it’s an alternative form of financing where an MCA company provides a lump sum payment to a business’s bank account in exchange for a percentage of its future credit and debit card sales.

Merchant cash advances have gained popularity among small businesses in recent years thanks to their flexibility and accessibility. Unlike traditional bank loans, which often require extensive paperwork, a lengthy approval process, and oftentimes collateral, not to mention years of operating history, MCAs offer a quicker and more streamlined funding solution.

A merchant cash advance is not a loan but rather an advance on future revenue. This means that the funder takes a calculated risk based on the business's projected credit and debit card sales. In return, the business agrees to pay the advance, along with a predetermined fee, by allowing the provider to collect a portion of its daily or weekly credit and debit card transactions.

One of the key advantages of a merchant cash advance is that it allows businesses to access funds quickly, without the need for collateral or a high credit score. This makes it an attractive option for businesses that may not otherwise qualify for traditional loans or have urgent funding needs, such as an oven on the fritz or a truck in the fleet requiring repair.

Once approved for a merchant cash advance, the business receives a lump sum payment in their bank account. This 

 can be used for a wide range of use cases for your business, such as 

 repairing or upgrading equipment, or covering unexpected expenses, to name a few.

The payment is structured to ensure that the capital provider receives a portion of the business's daily or weekly credit and debit card sales until the advance, along with the agreed upon fee, is fully repaid. This payment arrangement continues until the capital provider has recouped the full amount, plus the fee, also known as a factor rate, which is 

the amount fluctuates based on the business's sales volume typically

 expressed as a decimal in a range of 1.1-1.5. 

For example, a $10,000 USD advance at a factor rate of 1.2 is another way of illustrating a fee of 20%. Here’s the equation:  

1.2 x $10,000 USD = $12,000 USD total payments  

It's important to note that the payment process is typically automated, with the funder deducting a fixed percentage from the business's daily or weekly credit and debit card transactions. This means that the payment amount fluctuates based on the business's sales volume, providing some flexibility when times are slow. 

Merchant cash advances are often used by businesses in industries with high credit and debit card usage, such as retail, restaurants, and e-commerce. The payment structure aligns with the business's cash flow, as the provider only collects a percentage of the credit card sales, rather than a fixed monthly payment. When business is good, payments are on the higher side while during slow periods payments are smaller.

Furthermore, merchant cash advances are not subject to strict payment schedules or term limits. This allows businesses to focus on their operations and growth, without the added pressure of meeting monthly loan payments.

Compared to more traditional options, a merchant cash advance offers several advantages that can benefit businesses in need of quick access to capital.

One of the primary benefits of a merchant cash advance is the quick infusion of cash it provides. Unlike 

, which can take weeks or even months to be funded, a merchant cash advance can be obtained within days. This swift access to capital allows businesses to seize opportunities and cover immediate expenses that they might otherwise miss.

Additionally, unlike conventional loans, a 

merchant cash advance does not typically require collateral

, such as a piece of real estate or machinery to back the funding. Instead, the capital provider assesses the risk based on the business's credit and debit card sales volume and reserves the right to collect a portion of future transactions. This eliminates the need for businesses to put up valuable assets as collateral so a business owner can sleep better at night. MCAs also don’t typically require personal guarantees, which are common with loans.

Yet another advantage of a merchant cash advance is that they often have higher approval rates. Traditional lenders may deny loan applications due to various reasons, such as a 

, insufficient credit history, or lack of collateral. However, with a merchant cash advance, the primary consideration is performance, more specifically the business's credit and debit card sales volume, making it easier for businesses with lower credit scores, a limited operating history, or few assets to obtain financing.

While merchant cash advance offers several benefits, it is crucial to consider the potential drawbacks before making a decision. 

One of the potential drawbacks of a merchant cash advance is the cost. Since the capital provider assumes a higher risk by not requiring collateral or performing an extensive credit check, the fees associated with this type of financing may be higher than those of traditional loans. It’s essential to carefully consider the cost and evaluate if the benefits outweigh the expenses before signing on the dotted line.

Another consideration is the potential impact an MCA can have on 

. Payment for a merchant cash advance is directly tied to the business's daily or weekly credit card sales. During periods of lower sales, the payment amount decreases. When sales are up, the payment amounts will also increase. It’s important to consider your future revenue and whether you anticipate a spike that could cause your payments to go up. 

As with any business decision, it is vital to thoroughly evaluate your specific needs and goals before pursuing a merchant cash advance.

Take the time to review your financial situation and determine if a merchant cash advance aligns with your business's financial goals. Consider your current cash flow, revenue projections, and the potential impact of payments on your day-to-day operations. Keep in mind the short-term nature of MCA financing and the expectations of the funder. 

Furthermore, clarify your business goals and growth plans. Evaluate whether a merchant cash advance will contribute to your business's long-term success or if alternative financing options may be more suitable. Be sure to weigh the pros and cons against your unique circumstances.

In conclusion, a merchant cash advance can be an attractive option for businesses in need of short-term working capital. However, it is important to carefully consider the pros and cons and assess your specific business needs before making a decision. By doing so, you can determine if a merchant cash advance is the right choice for your business's financial goals and chart a path to success.

Learn the ins and outs of merchant cash advances, the types of businesses that benefit most, and if an MCA is right for your capital needs.

Learn the ins and outs of merchant cash advances, the types of businesses that benefit most, and if an MCA is right for your working capital needs.

Is a Merchant Cash Advance Right for Your Business?

Connect with Kyle on LinkedIn to keep the conversation going.

Kyle Polley

Embedded finance has emerged as a critical component in today's fintech ecosystem, offering an agile, seamless, and consumer-centric way to deliver financial services. This integration transforms many platforms, from online marketplaces to mobile apps, into hubs for financial transactions. While the opportunities are promising, the security of these financial technologies remains a paramount concern. In this post, we will explore the two cornerstone technologies—APIs and iFrames—that enable embedded finance and discuss best practices for securing them.

 refers to the seamless integration of financial services into platforms and applications outside of the traditional financial sector. This integration is facilitated primarily through two technologies: Application Programming Interfaces (APIs) and Inline Frames (iFrames).

APIs act as the intermediary that allows two different software applications to communicate and interact. They enable third-party services to access specific functionalities or data of a primary service provider. For example, APIs are crucial for integrating payment gateways, investment platforms, or insurance services into embedded finance ecosystems.

 allow the embedding of an HTML document within another HTML document. This technology enables the integration of various financial services—like secure payment forms or loan applications—directly into a website. Despite its occasionally negative reputation for being associated with ads and phishing schemes, when deployed correctly, iFrames can serve as a secure and effective tool for integrating complex financial functionalities.

Enforcing SSL (Secure Socket Layer) encryption and HTTPS (HyperText Transfer Protocol Secure) protocols for all API calls is the foundational step in securing API communications. This encryption ensures that any data transmitted over the internet is encrypted, rendering it unintelligible to unauthorized third parties. By doing so, organizations can substantially mitigate the risks associated with Man-In-The-Middle attacks, where an attacker could intercept, read, and potentially modify the data during transmission.

Rate limiting restricts the number of API calls from a particular IP address within a given time frame. This is crucial for protecting against Denial-of-Service (DoS) and Distributed Denial-of-Service (DDoS) attacks, where attackers attempt to flood the system with traffic to make it unresponsive. By implementing rate limiting, organizations can ensure that legitimate users still have access to services even when an attack is taking place, thereby preserving functionality and user experience.

 (ACLs) provide a structured approach to managing permissions. Granular ACLs can be set up to define precisely which users or systems have access to specific types of data or functionalities. This is particularly important for minimizing the potential damage that can be done if an API key is compromised. By adhering to the principle of "least privilege," wherein systems and users are given the minimum levels of access—or permissions—they need to perform their functions, organizations can significantly reduce security risks.

As APIs evolve and new features are added, it's crucial to regularly perform penetration testing. These tests simulate cyber-attacks to find vulnerabilities before malicious hackers can exploit them. Continuous testing, coupled with API hardening strategies such as input validation and output encoding, ensures that APIs remain secure even as they scale and evolve.

 attribute allows website owners to impose restrictions on iFrames, thus isolating them from other elements on the page. This isolation ensures that even if the iFrame contains malicious code, it cannot easily impact the main website or its visitors. Owners can customize the level of access the iFrame has to various browser functions, such as running scripts, submitting forms, or accessing the DOM, providing an additional layer of security.

Limiting Which Websites Can Render an iFrame

To prevent Clickjacking attacks—where attackers trick users into clicking hidden elements within an iFrame—it's essential to control which websites can render your iFrames. Using HTTP headers like 

 can limit the rendering to trusted domains or even restrict it to the same origin.

Validation and sanitization of user input are vital for preventing Cross-Site Scripting (XSS) attacks, where attackers inject malicious scripts through input fields. Utilizing modern browser features like the 

 interface allows for secure two-way communication between the iFrame and the parent document.

Moreover, sanitization techniques should be applied to strip out or neutralize characters that have special meanings in HTML, JavaScript, or SQL, thereby reducing the risk of code injection attacks.

The integration of financial services into various platforms through embedded finance offers unparalleled convenience and functionality. However, the security of these integrations cannot be compromised. By understanding the unique security concerns related to APIs and iFrames, organizations can implement effective strategies to protect against vulnerabilities and potential attacks.

Security isn’t just a feature —it’s a core foundational element of embedded finance. Every strategic decision must be calibrated with the safety and privacy of a customer’s data as a top priority.

Key points to keep in mind to ensure your embedded finance offering is secure and your users' data is protected.

Key points to keep in mind to ensure your embedded finance offering is secure and your users' data is protected against fraud and unauthorized access. 

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