CSG Forte and Lendica have formed a strategic partnership to allow small and medium-sized businesses (SMBs) to borrow money directly from their software vendors instead of traditional financial institutions.
The collaboration introduces an embedded business credit solution for these vendors called the iBranch, Lendica said in a Tuesday (Jan. 30) press release.
Embedded lending has gained popularity among software giants, according to the release.
For SMBs, embedded lending offers a more accessible and cost-effective credit solution, the release said. For software vendors looking to provide loans to their customers, leveraging private datasets for underwriting can cut customer acquisition costs.
Customizable digital payments firm CSG Forte is partnering with embedded artificial intelligence (AI) lending company Lendica to bring this lending model to its independent software vendor (ISV) partners and their merchants, according to the release.
This partnership will enable a diverse range of ISV partners, including those in field services and property management industries, to provide an embedded lending experience, the release said. For example, property management merchants can use the solution to fund building repairs, purchase supplies or promote their businesses.
The benefits of embedded lending extend beyond borrowers, the release said. ISVs also stand to gain by earning a portion of the fee revenue generated from their embedded lending programs as well as enhancing customer loyalty.
Through this partnership, CSG Forte’s ISV partners and their merchants can leverage the iBranch solution, providing an easy-to-use and affordable lending experience that and fosters future growth, per the release.
PYMNTS Intelligence has found that embedded finance promotes customer loyalty and engagement. Eighty-eight percent of companies that offered some type of embedded finance option reported increased engagement, and 85% said it helped them acquire new customers, according to “How Nonfinancial Brands Can Benefit From Offering Embedded Financial Services,” a PYMNTS Intelligence and Galileo collaboration.
In an earlier partnership, Lendica said in February that its embedded finance integrations are available for Shopify and Salesforce. With these integrations, customers can use the PayLater and FundNow products to delay payments to their vendors or speed up collection from wholesale accounts.
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