Financial Liberation for Small and Medium Businesses Enhanced by Built-in Capital Opportunities
Small and medium-sized businesses (SMBs) in the United States contribute significantly to the economy, accounting for 43.5% of the GDP and employing over 59 million workers. However, access to capital remains a significant challenge for many SMBs. Traditional lending options can be rigid and inaccessible, requiring lengthy applications, credit checks, and personal guarantees.
Enter Pipe, an innovator in fintech, reshaping how small and medium-sized businesses access financing. Pipe's embedded finance solution, Boulevard Capital, is facilitating financial growth for SMBs by integrating financial services directly into their existing platforms. This integration removes traditional friction in financing and financial management, making crucial financial tools more accessible and tailored to SMB needs.
One such example is Swella Braid Bar, a self-care business that found traditional lending options inadequate for their needs. Swella Braid Bar has expanded with the help of Boulevard Capital, which is powered by Pipe. The capital offer from Boulevard did not require paperwork, credit scores, or collateral, making it a customer-friendly solution for SMBs.
Embedded finance through platforms like Pipe supports SMB growth in several key ways:
- Better Access to Credit: Embedded finance providers leverage real-time sales and transaction data to build alternative credit scores, simplifying and speeding up loan and financing approvals for SMBs, especially those without an extensive credit history.
- Integrated Financial Operations: SMBs can manage sales, payments, finance, and inventory within a single seamless ecosystem, reducing the need to juggle multiple platforms and improving operational efficiency.
- Cost Efficiency: By reducing intermediaries and streamlining processes through embedded APIs, embedded finance lowers transaction fees and overall financial service costs for SMBs.
- Data-Driven Growth: Embedded finance platforms collect and analyze real-time transaction and customer data, empowering SMBs to make better decisions on marketing, customer loyalty programs, and cash flow management.
- Enhanced User Experience: The integration of financial services removes traditional banking friction and delivers a seamless user experience within the SMB’s existing tools, improving customer retention and engagement.
Pipe's embedded finance model enables SMBs to grow by making credit more accessible, automating and unifying financial processes, reducing costs, and leveraging data insights — all without leaving their core business applications or platforms. By embedding capital access within familiar software, Pipe eliminates the friction of traditional financing, offering more accessible, seamless, and customer-friendly capital.
According to Bain & Company, the embedded finance market is projected to exceed $588 billion in revenue by 2030, with embedded lending as a key driver of this growth. With its innovative approach, Pipe is transforming the financial landscape for small businesses, making capital more accessible and streamlined for SMB growth.
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