In the capital‑intensive construction sector, managing cash flow while scaling multiple projects is critical. Several construction‑focused businesses, including solar installers, specialty contractors, and materials suppliers, turned to Lendica’s PayLater and FundNow products to unlock working capital, speed project delivery, and capture material cost savings. As a trusted working capital partner to small-medium and mid-market businesses across the U.S., Lendica has financed hundreds of millions of dollars in project costs and receivables, delivering positive ROI through faster project completion, preserved cash, and reduced procurement costs.
Construction Company Profiles
Solar Installation Contractor: Regional residential & commercial PV installer with frequent equipment purchases.
Project schedules slip when funds are tight, limiting the number of concurrent jobs.
Missed early‑pay or bulk‑buy discounts increase project costs.
Lendica’s Working Capital Products
PayLater
Purpose in Construction: 30–60‑day financing of supplier invoices for materials & equipment.
Typical Use Pattern: Used repeatedly; construction companies commonly finance 5-10 invoices each month, ranging from $5K to $10K each, resulting in million dollar average annual totals.
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Material Cost Savings: PayLater enabled bulk material buys capturing supplier discounts (5–10 %) that exceeded the financing fee (~2 %).
Liquidity Preservation: Hundreds of thousands of dollars of costs financed externally, freeing cash for payroll and new bids.
Return on Investment for Construction Companies
Net Savings Example: Financing fee of 2.5 % on a $30K material invoice (~$750) offset by 6 % bulk‑buy discount ($1,800) → $1,050 net gain.
Revenue Uplift Example: Access to $9K FundNow advance allowed a specialty contractor to start the next job two weeks earlier, adding an extra project worth $25K in the same quarter.
Repeat Usage Indicator: Solar installer increased financed volume from $15K first month to $190K over 6 months, demonstrating perceived value.
Best Working Capital Practices for Construction Businesses
Combine PayLater & FundNow: Using both products creates a continuous financing loop from procurement to payment.
Start Small, Then Scale: Begin with a single purchase or invoice to build confidence before expanding limits.
Leverage Supplier Discounts: Model financing fees against early‑pay incentives; savings often outweigh costs.
Automate Repayments: Linking accounts for auto‑debit reduces admin overhead and ensures on‑time performance.
Conclusion
By integrating Lendica’s flexible PayLater and FundNow financing into their workflows, construction businesses transformed cash‑flow constraints into a strategic advantage. The result is faster project cycles, lower material costs, and stronger growth capacity, all achieved with minimal administrative burden. Lendica empowers construction firms to build momentum and scale projects without tying up precious working capital.
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Eric Makowski, President of AMS Healthcare Staffing, shares how Lendica’s fast, affordable, and human-centered approach to lending gave him the flexible working capital he needed to grow; without the high-pressure sales tactics and steep rates of traditional lenders.
From High-Pressure Lenders to a Refreshingly Helpful Experience
When Eric Makowski started looking for working capital to support his healthcare staffing businesses, he was met with an all-too-familiar wall of high-interest, aggressive lenders. The offers he found were expensive, and the sales approaches felt overly pushy; until he came across Lendica through a simple Google search.
Unlike the “cutthroat” tone he experienced elsewhere, Lendica stood out for its approachable and informative style. His initial conversation with Chase, Director of Partnerships at Lendica, immediately shifted the tone. Rather than being sold to, Eric felt he was entering a partnership, one where questions were welcomed and the process was clearly explained.
“When I called Lendica and talked to Chase, he was easy to deal with, just like talking to another colleague who understood my situation. He didn’t give me the hard sell, he just gave me the details of the deal and it was really helpful to have him on my team.”
Eric Makowski, President of AMS Healthcare Staffing
Fast, Flexible Working Capital for Real Business Needs
Eric’s top priorities were securing working capital quickly and with minimal hassle. The Lendica platform delivered on both fronts. Its intuitive app made it easy to access funds, and the approval process was streamlined and stress-free. What really sealed the deal, though, was the lower interest rate; substantially better than the hard money lenders he’d considered.
With two healthcare staffing companies under his leadership, Eric needed a financial tool he could rely on when opportunities, or unexpected expenses, arose. His usage of Lendica’s line of credit varies throughout the year, but it’s a core part of his capital strategy, and he anticipates leaning on it more as his businesses grow.
Powering Growth with FundNow
In the healthcare staffing world, waiting 30, 60, or even 90 days for invoice payments can tie up valuable capital; capital that’s needed to meet payroll, onboard new contracts, or invest in operations. That’s why Eric has turned to FundNow, Lendica’s invoice financing solution that lets businesses advance payment on outstanding invoices.
By using FundNow, Eric can unlock working capital that would otherwise be stuck in accounts receivable. This has helped him cover necessary expenses and reinvest into business development without the typical strains of traditional cash flow cycles. In a field where staffing demands can shift rapidly and payment timelines are often out of your control, the ability to accelerate cash flow gives Eric a strategic advantage, and peace of mind.
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A Human Touch in a Digital World of Working Capital
One of the key differentiators for Eric was the consistent, personalized support he received. Rather than bouncing between anonymous service agents or relying on chatbots, he appreciated having a single point of contact in Chase. That relationship made it easier to navigate the process, especially when timing was critical and funds needed to be expedited.
“It was the speed of getting the available funds, it was the ease of the app and it was the interest rate. The interest rate just beat everybody by a mile.”
Eric Makowski, President of AMS Healthcare Staffing
In an industry where speed and clarity matter, having a real person who could explain terms and proactively move things forward added tremendous value.
Looking Ahead with Confidence
With Lendica, Eric has found more than just a lending solution; he’s found a long-term partner. For Eric, Lendica’s combination of technology, competitive pricing, and genuine customer care has made all the difference. As his companies continue to expand, Lendica will remain a trusted part of the journey.
If you’re an entrepreneur navigating cash flow or growth, discover how Lendica’s modern capital solutions can help you thrive.
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Matt Stringer, CEO of California Job Shop, shares how Lendica’s modern approach to lending helped him access affordable working capital after acquiring his business, and why it stands out in a sea of outdated, high-cost financing options.
From Acquisition to Reality: Facing the Financing Gap for Working Capital
When Matt Stringer acquired California Job Shop, a recruiting firm serving healthcare, legal, and mental health clients, he stepped into a challenging financing landscape.
“I bought this business two years ago in December 2023 that the fact that I had just acquired it meant that I couldn’t qualify for a lot of different financial stuff that was more bank financing. So I had to be kind of in the merchant cash space.”
Matt Stringer, CEO of California Job Shop
Struggling with high-interest merchant cash advances (MCAs) and limited options for newer business owners, Matt needed capital that was flexible, transparent, and trustworthy. Amid economic uncertainty and unpredictable cash flow, the stakes were high.
Why Matt Chose Lendica: Tech, Trust, and Flexibility
In a sea of lenders offering fast cash but little reassurance, Lendica stood out. What resonated most was the company’s modern, tech-enabled approach.
“Lendica feels more like a tech company that happens to do finance.”
Matt Stringer, CEO of California Job Shop
This wasn’t just about branding, it was about functionality. Lendica’s online portal, real-time access to capital, and clean user experience made financial management simpler. Matt especially appreciated the revolving line of credit, which allowed him to take draws as needed to cover cash flow fluctuations without locking into rigid loan terms.
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He also noted the positive relationship with his Lendica representative, Chase (Director of Partnerships at Lendica), describing him as reasonable and supportive, a stark contrast to the transactional tone of traditional MCA providers.
Ready to Experience a Better Way to Finance Your Business?
Matt’s story underscores a reality for many entrepreneurs: acquiring a business can be a powerful path to ownership, but only if affordable working capital is available.
With Lendica, he found more than a lender. He found a tech-forward, transparent platform that understood his business, respected his goals, and provided the working capital tools to grow with confidence.
If you’re an entrepreneur navigating cash flow challenges, or early-stage growth, discover how Lendica’s modern capital solutions can help you thrive.
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The Plaza Group, headquartered in Houston, Texas, is a prominent international petrochemical marketing company specializing in the distribution and sale of chemical products. Established with a mission to provide comprehensive and reliable chemical supply solutions, The Plaza Group has built a robust portfolio, including intermediates, solvents, industrial chemicals, agricultural chemicals, feed ingredients, lignosulfonates, and Top Service Fuels®. They cater to diverse industries, ranging from agriculture and manufacturing to energy and environmental sectors, with services that extend beyond product distribution to consulting, strategic planning, supply chain management, and tailored market analyses.
The Challenge
With its extensive reach and diversified offerings, The Plaza Group recognized an opportunity to boost margins. By strategically balancing inventory levels, customer credit terms, and cash-flow management, the company positioned itself to enhance its financial performance.
Conventional financing solutions were proving inadequate due to their lack of flexibility, cumbersome processes, and limited integration with existing systems. The Plaza Group sought an innovative financial solution that would seamlessly fit into their operations without causing disruption, enhance liquidity, and reduce their exposure to the credit risk associated with delayed customer payments.
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The Plaza Group chose Lendica because it uniquely addressed the specific financial management challenges they faced. Lendica offers an advanced embedded lending solution that integrates directly into the company’s existing Enterprise Resource Planning (ERP) system, Datacor, making the adoption of financial management tools seamless and operationally efficient.
The decision to partner with Lendica was influenced by several key factors:
Seamless ERP Integration: Lendica’s technology allowed for effortless integration into The Plaza Group’s existing workflows. The embedded solution required no significant alterations to their current ERP platform, enabling quick deployment and immediate operational impact without extensive training or disruption.
Immediate Liquidity: The embedded A/R financing from Lendica enabled The Plaza Group to quickly convert outstanding invoices into cash, alleviating the liquidity constraints caused by delayed customer payments. Immediate liquidity empowered them to optimize their inventory management and proactively address market opportunities.
Risk Reduction: By leveraging Lendica’s solution, The Plaza Group could transfer credit risk to Lendica, significantly mitigating their exposure to delayed payments and potential defaults. This reduced risk allowed the company to focus more strategically on growth and operational efficiency rather than credit management.
Ray Heinen joins Lendica’s Director of Partnerships, Chase McPherson, to discuss working capital strategies.
Implementation and Experience
Implementing Lendica’s embedded solution proved straightforward. Once integrated, The Plaza Group’s finance team could directly access and manage accounts receivable financing through their familiar ERP environment. The intuitive and automated nature of Lendica’s platform significantly reduced administrative burdens previously associated with manual processes.
According to the company’s financial executives, the most striking benefit observed post-implementation was the substantial reduction in time spent managing receivables and chasing payments. This enabled the finance team to reallocate their attention to strategic tasks like market analysis, proactive inventory management, and strategic planning for expansion.
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The Plaza Group realized several tangible benefits directly attributed to their partnership with Lendica:
1. Enhanced Cash Flow and Working Capital:
By leveraging Lendica’s embedded solution, The Plaza Group significantly enhanced their cash flow management. Immediate access to capital from invoice sales provided a consistent and predictable liquidity stream, supporting more effective planning and investment decisions. With improved working capital management, The Plaza Group efficiently expanded their inventory, addressed customer needs swiftly, and capitalized on emerging market opportunities.
2. Reduced Credit Risk:
The ability to offload the responsibility for late payments and defaults to Lendica substantially reduced credit risk exposure. This strategic financial management move allowed The Plaza Group to maintain healthier financial statements and focus more resources on growth and business innovation rather than chasing receivables.
3. Operational Efficiency and Automation:
Lendica’s integrated platform automated many of the administrative and financial processes involved with invoice financing. Automation eliminated manual errors and inefficiencies, ensuring that the finance team could concentrate on strategic activities such as market insights, supply chain optimization, and customer relationship management rather than repetitive administrative tasks.
4. Strategic Business Focus:
Freed from administrative burdens, The Plaza Group’s executives and finance team were better positioned to leverage strategic opportunities. Enhanced liquidity and operational efficiencies facilitated informed decision-making, allowing the company to pivot swiftly in response to market changes and better manage fluctuating supply chain dynamics.
Client Testimonial
Executives at The Plaza Group have expressed significant satisfaction with their decision to integrate Lendica’s embedded solution. According to their financial leadership, the transition was seamless, the immediate liquidity significantly beneficial, and the ability to mitigate credit risk invaluable. The Plaza Group now enjoys greater financial flexibility, allowing them to pursue aggressive growth strategies confidently.
The Plaza Group expressed significant satisfaction with their decision to leverage Lendica’s tools.
Conclusion
The Plaza Group’s partnership with Lendica has demonstrated a clear pathway for chemical distributors and similar businesses to effectively tackle working capital management and cash flow challenges. The adoption of embedded lending solutions through Lendica has empowered The Plaza Group to manage their financial health proactively, optimize inventory, reduce risk, and enhance operational efficiency.
The successful implementation and significant benefits realized by The Plaza Group underscore the transformative potential of embedded financial technology in industries burdened by complex financial and operational workflows. Through this strategic collaboration, The Plaza Group not only navigated financial challenges more effectively but positioned themselves firmly for sustained growth and market leadership.
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Managing cash flow and providing easy payment options are critical for suppliers like SolarTek, who serve fast-growing industries such as solar installation. Recently, SolarTek made the decision to partner with Lendica for its customers Accounts Payable solutions, transitioning away from BlueTape.
The result? A streamlined experience that delivers more flexibility, support, and growth potential for SolarTek and its customers, such as Custom Pro, a solar installation leader.
Here’s how SolarTek is leveraging Lendica’s solutions to create a better financing ecosystem for their customers and why this change is helping them optimize their business.
Challenges with Financing for Solar Suppliers
SolarTek, like many suppliers, needed a financing partner that could address key pain points:
Efficient Onboarding: SolarTek’s customers often operate on tight timelines and need fast, frictionless access to credit to keep projects moving. It can take weeks to onboard new customers with countless emails and contracts.
Wider Coverage: The diversity of their customer base meant SolarTek required a solution offering flexible terms for established companies and new players alike. Many SolarTek customers struggle to get access to better payment solutions.
Scary Terms: Acting as a guarantor for customer credit lines increased SolarTek’s financial exposure—something they wanted to avoid.
While BlueTape provided a starting point, it fell short in several areas. Lendica stepped in with a solution built specifically to address these needs.
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SolarTek’s customers experienced a dramatic improvement in the onboarding process with Lendica. The platform offers a user-friendly interface and fast, nearly instant approvals, allowing customers to apply for payment plans with a two-minute application by connecting bank and accounting or ERP data. This seamless experience encourages more customers to use financing, helping SolarTek drive additional sales.
2. Risk-Based Pricing for Every Customer
One of the standout features of Lendica is its ability to offer risk-based pricing. Larger customers benefit from bank-like rates and extended payment terms, while newer or smaller businesses still receive tailored offers without the fear of rejection. This inclusivity means SolarTek can cater to a broader range of customers, strengthening relationships and expanding their market.
3. No Guarantor Requirement
Since Lendica is able to more accurately price risk and assess customer relationship, SolarTek no longer has to act as the guarantor for their customers’ financing. This eliminates a significant financial risk and frees SolarTek to focus on growing their business without taking on unnecessary liabilities.
SolarTek is a leading provider of solar equipment throughout the US.
”Lendica has been one of the best decisions for our business and our customers. Their quick onboarding process and flexible credit options allow our customers to access financing quickly, while we avoid the financial risks of acting as a guarantor. Direct communication and quick responses from their customer support teams make Lendica feel like a true partner.”
Uros Ceglaj, CEO of SolarTek
Custom Pro: A Happy, Converted Customer from BlueTape
Custom Pro, a solar installation company and one of SolarTek’s key customers, is already seeing the impact of the switch to Lendica from BlueTape.
Custom Pro has used Bluetape for a year before applying to Lendica. In that time, they had several challenges and were delighted to move their factoring line to Lendica’s PayLater.
Here’s how they’re leveraging their line of credit with Lendica to optimize operations:
CustomPro is a leading solar and roofing company in Texas.
1. Financing Across Vendors
Lendica allows Custom Pro to use their line of credit with multiple vendors without the friction of onboarding. Instead of asking a new vendor to onboard, an important step with BlueTape, Lendica’s able to seamlessly auto-approve new relationships. This flexibility simplifies their purchasing process and helps them maintain cash flow across the entire project.
2. Scalable Credit Line
Custom Pro appreciates how their line of credit with Lendica grows as they continue to use it responsibly. Unlike other lenders, Lendica does not impose limits on credit lines, allowing Custom Pro to scale their financing to levels larger than what their previous lender offered. This flexibility empowers them to take on bigger projects with confidence, knowing they have the financial tools to support their growth.
3. Dedicated Customer Support
Lendica’s team provides hands-on support to Custom Pro, ensuring they have the guidance and resources they need. This exceptional service builds trust and makes financing a seamless part of their business strategy.
”Lendica has made financing simple and effective for our business. The flexibility to grow our credit line as we use it has been a huge advantage, and their team is always available to provide support. Lendica isn’t just a financing provider—they’re a valuable partner in helping us achieve our goals.”
Drew Jansky, CEO of Custom Pro
A Partnership Built for Growth
For SolarTek, the switch from BlueTape to Lendica wasn’t just about finding a better financing partner—it was about creating a better experience for their customers. With Lendica, SolarTek is driving innovation in customer financing, offering solutions that are simple, scalable, and designed to meet the diverse needs of their clients.
Are you ready to optimize your supply chain financing? Learn how Lendica can help you provide seamless, scalable solutions for your customers.
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Packaging companies buy materials first and get paid later. That gap squeezes cash. Lendica offers two simple working capital products to help:
PayLater: Lendica pays your supplier bill now. You pay Lendica back on a schedule up to 90 days(many teams use ~6 weekly payments ≈45 days).
FundNow: Lendica advances 70%–90% of an approved customer invoice. You repay when your customer pays (or by the agreed date).
These tools shorten the cash gap, cut rush costs, and help you say “yes” to larger or faster orders.
Common Cash Problems in Packaging
Payment timing: Brands and retailers often pay in 30–90 days. Suppliers want faster payment.
Big material buys: Paperboard, corrugate, films, inks, and plates are bought in bulk and can swing in price.
Project spikes: Launches and promos need tooling and labor before you see cash.
Expedites: When cash is tight, you buy smaller amounts and ship fast, both hurt margin.
Where Lendica helps: at the supplier bill and at the receivable.
Packaging Company Profiles
Folding Carton Converter:
Uses PayLater for sheets and inks ($50k–$140k). Often batches multiple invoices for one launch. Plans usually finish in ~30–45 days (≈3–6 weeks); up to 90 days available.
Co-Packer for Brands:
Uses FundNow to advance 70%–90% of invoices to national retailers. Typical use is ~30–45 days (≈3–6 weeks); up to 90 days available to cover payroll and components.
Corrugated & Displays Plant:
Mixes both: PayLater to pre-buy materials and FundNow on big outbound invoices for seasonal programs.
Working Capital Solutions for Packaging
PayLater (Supplier-Side)
What it does: Lendica pays your vendor invoice now. You repay Lendica on a schedule up to 90 days(many teams choose ~6 weekly payments ≈45 days).
Good for: buying early to lock allocation or price, capturing 2/10 supplier discounts, aligning material arrivals with press time.
Pricing: varies by credit and invoice. Lendica markets rates starting around ~1% for 30 days; examples in this doc sometimes use ~1.8% over ~45 days to show the math (illustrative, not quotes).
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What it does: Get 70%–90% of an approved customer invoice right away.
Repayment: when your customer pays, or by the agreed term (often up to 90 days).
Good for: covering payroll and COGS while waiting on retailers, handling back-to-back launches.
Pricing: varies by credit and AR quality; marketed from ~1% per 30 days. Our example below uses a ~2.5% total cost over a few weeks to illustrate the math (not a quote).
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Invoice-tied financing is a simple lever for day-to-day cash. PayLater helps you buy what you need now and repay up to 90 days later (many teams use ~6 weekly payments ≈45 days). FundNow turns approved invoices into 70%–90% cash today. Used together, they shorten your cash conversion cycle by weeks, protect margin with early-pay and pre-buys, and free up capacity to take bigger or faster orders, without waiting for customers to pay.
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In today’s fast-paced digital landscape, businesses are seeking more than just software solutions from their vertical SaaS and ERP providers—they’re looking for complete tools that help them grow and navigate financial challenges. For many companies, especially small and medium-sized enterprises (SMEs), access to working capital is a critical need, often determining whether they can expand, improve operations, or even maintain day-to-day functions.
To meet this growing demand, vertical SaaS and ERP platforms are beginning to embed lending solutions directly into their software. This integration provides businesses with the financial tools they need while keeping them within the platforms they already rely on. By embedding lending, software providers not only add significant value for their users but also open new revenue streams and strengthen customer loyalty.
What is Embedded Lending?
Embedded lending refers to the seamless integration of lending services directly into a platform or application, allowing businesses to offer financing options at the point of need. Rather than requiring users to seek external loans or credit, embedded lending provides access to financing within the same platform they already use for their operations, such as an ERP system or e-commerce platform. This simplifies the borrowing process, speeds up approval times, and creates a more convenient experience for users. It even lowers rates!
For example, a vertical SaaS company focused on online retail might offer embedded lending by allowing customers to finance their purchases with a buy-now-pay-later option integrated into the checkout process. A business customer purchasing $10,000 worth of products can choose to finance the transaction with flexible payment terms.
The embedded lending system instantly evaluates the customer’s creditworthiness and approves the loan within seconds, all without disrupting the shopping experience. This integration not only improves conversion rates by making purchases more affordable but also creates a streamlined, seamless process for both the wholesale retailer and its customer.
Why Your Customers May Need Embedded Lending Solutions
For SMEs, accessing capital can be a major hurdle. Traditional lending processes are often slow, cumbersome, and difficult to navigate, with many businesses struggling to secure the funding they need in time to address pressing concerns. As a result, companies may face cash flow shortages, limiting their ability to grow, invest in new projects, or even meet immediate operational needs.
This is where vertical SaaS and ERP platforms have a unique opportunity. By embedding lending services directly into their software, they offer users a simple, streamlined way to access working capital without leaving the platform. With this integration, users can secure financing quickly and efficiently, enabling them to focus on running their business.
Embedded lending offers a new promise for more affordable credit solutions.
How Embedded Lending Adds Value
When vertical SaaS and ERP platforms offer embedded lending, they provide users with a seamless financial solution that’s fully integrated with their operational tools. Here’s how this benefits both the software provider and the end-user:
Solving Cash Flow Challenges: By offering tailored lending options, platforms can help users bridge cash flow gaps, fund new projects, or purchase critical materials without needing to apply through traditional banks.
Enhanced User Experience: Embedded lending keeps users within the software environment they’re familiar with, reducing the friction of dealing with external lenders and manual application processes.
Increased Customer Retention: When businesses know they can rely on their SaaS or ERP platform for both operational management and financial support, their loyalty increases, reducing churn and improving lifetime customer value.
According to a recent McKinsey & Company report, embedded lending is growing along with the embedded finance market at 15-20% y/y.
By 2030, the embedded lending market could surpass $100 billion and account for 10 to 15 percent of banking revenue pools.
McKinsey & Company
Key Advantages to Embedded Lending
One of the key advantages of embedding lending into vertical SaaS and ERP platforms is the ability to offer financial solutions that are tailored to specific industries. SaaS platforms that cater to niche markets—whether it’s construction, healthcare, retail, or another field—have deep insights into their users’ operations and financial needs. This allows them to offer more personalized lending options than traditional financial institutions.
For instance, a SaaS platform designed for construction businesses could offer financing solutions aimed at helping companies purchase materials or cover payroll between project payments. Similarly, an ERP system for chemical businesses might provide short-term loans to help manage seasonal inventory or fluctuating demand.
Datacor, an ERP company focused on process manufacturers and distributors, partners with Lendica to offer its customers A/R and A/P loans embedded into their invoicing tools. This service allows businesses to access working capital by borrowing against future invoices, streamlining the process with a few clicks, helping businesses manage cash flow and expand more easily.
1. Drive New Revenue Streams
For SaaS and ERP providers, embedding lending is more than just adding value for users—it’s a way to unlock new revenue streams. By partnering with financial institutions, these platforms can earn referral fees, commissions, or revenue shares on lending transactions facilitated through their software.
This additional revenue can be reinvested into the platform, driving further innovation and expanding service offerings. As more users take advantage of embedded lending, the platform’s profitability increases without needing to introduce significant changes to its core product.
2. Strengthen Your Competitive Edge
In an increasingly crowded SaaS and ERP market, platforms must find ways to differentiate themselves. Embedding lending solutions is a powerful way to stand out from competitors by offering an all-in-one solution that meets both operational and financial needs.
As industries continue to shift towards digital-first solutions, platforms that offer embedded lending will be seen as leaders in innovation. By providing comprehensive tools that help users manage all aspects of their business—from operations to financing—SaaS and ERP platforms can solidify their place as essential partners in their customers’ success.
3. Future Proof Your Vertical SaaS and ERP Platform
The integration of lending solutions into vertical SaaS and ERP platforms is a natural evolution in the digital economy. By offering embedded lending, these platforms can solve one of the most pressing challenges their users face: access to capital. This not only adds significant value for users but also creates new revenue opportunities and strengthens customer loyalty.
As industries become more reliant on digital solutions to manage both operations and finances, SaaS and ERP platforms that embrace embedded lending will position themselves as leaders in their space, helping their customers thrive in an ever-changing business landscape.
Lendica has helped thousands of small and medium-sized enterprises (SMEs) with efficient, non-dilutive capital during critical growth periods. As word spreads, we often find ourselves alongside traditional banks in client meetings. Despite access to prime rates from banks, clients still ask: Why should I use Lendica?
In this post, we will share several use cases that our clients have flagged as key benefits to using Lendica’s fast, affordable capital tools instead of relying on traditional banking relationships.
1. Freeing Your Team from Tedious Paperwork
How many hours does your finance team spend communicating with banks? This goes beyond the initial credit approval process and continues throughout the year:
• Providing constant updates on “proof of business” documents
• Submitting buyer and supplier contact lists for background checks
• Preparing cargo receipts and invoices for loan drawdowns
This manual, time-consuming process is central to how banks assess your business. Even after months of paperwork and approval, the burden doesn’t end—each new funding checkpoint brings these processes back.
Lendica changes the game by using technology to gather and analyze data that would take banks months to process. By integrating with your ERP system, our software automatically assesses your financial health, allowing lending decisions in minutes instead of months. Your finance team can now focus on business development and contract negotiations rather than endless paperwork.
Plus, your employees won’t need to learn new systems—everything is managed within your existing ERP, with every invoice seamlessly linked to funding.
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Think a prime rate from the bank is the only cost you’re paying? Consider these hidden fees:
• Handling commissions, small bill charges, commitment fees, service charges, annual review fees, third-party vendor fees, foreign exchange fees, and more.
Additionally, have you accounted for indirect costs like:
• Holding security deposits
• Purchasing bundled investment or insurance products
• Committing to move certain funds through the bank
At Lendica, AI handles the heavy lifting, so we don’t need an extensive back-office team, and we don’t attach unnecessary strings. That’s why our pricing is straightforward and fair. Our AI also learns about your business over time, ensuring your pricing reflects the true nature of your operations.
3. Flexible Terms with Fewer Restrictions
Banks operate with limited flexibility and often require various guarantees and covenants, such as:
• Personal or corporate guarantees
• Pledging real estate assets
• Notifying trade partners about borrowing arrangements
• Restrictions on repayment dates
• Prohibitions on early repayment
• Monthly onsite audits and strict financial ratio adherence
Lendica provides customized solutions with far greater flexibility. We can tailor the loan amount, repayment schedule, and interest rates to meet your unique needs. And because we operate in real-time with your business, we understand your financial health without needing collateral like real estate or personal assets. Just use the capital as part of your business, no strings attached.
The Lendica Advantage
For SMEs seeking fast, flexible, and accessible credit, Lendica offers clear advantages over traditional banks. With superior data analysis, transparent pricing, flexible terms, and unmatched convenience, we’re transforming the way businesses access capital. Ready to experience the difference? Let’s get plugged in!
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The solar industry is experiencing unprecedented growth, driven by the global shift towards renewable energy. However, with this rapid expansion comes significant financial challenges, particularly in managing cash flow and financing new projects. It’s reported that a substantial number of solar companies struggle or even fail due to insufficient funding, highlighting the critical importance of effective financial management. To navigate these challenges, many solar companies are turning to innovative financial strategies like factoring and reverse factoring, which are proving to be game-changers for the industry.
The Financial Challenges in the Solar Industry
Solar companies, like many in the construction and energy sectors, often face substantial upfront costs. These include purchasing materials, paying for labor, and covering other operational expenses. Compounding these challenges is the fact that payment for completed projects can be delayed for weeks or even months, while suppliers often demand payment upfront or on tight terms. This combination of factors can create severe cash flow issues, leading to project delays, missed opportunities, and in some cases, business failure.
Accounts Receivable: Factoring for Immediate Access to Capital
One of the most pressing challenges solar companies face is the delay in receiving payment after a project is completed. On average, it can take anywhere from 30 to 90 days to receive payment from clients after a project is finished. This delay can create a cash flow bottleneck, limiting the company’s ability to move forward with new projects. Factoring addresses this challenge by providing immediate access to funds the very same day a project is completed.
Through factoring, solar companies can sell their accounts receivable (invoices) to a third-party financial institution, often referred to as a factor. The factor advances a significant percentage of the invoice value—typically around 80-90%—to the company immediately, with the balance (minus a fee) paid once the client settles the invoice. This same-day funding capability allows companies to maintain cash flow and continue operations without interruption.
The benefits of factoring include:
Accelerated Cash Flow: Access to funds on the day of project completion ensures that solar companies can immediately reinvest in their next project or cover ongoing operational costs.
Reduced Financial Stress: Knowing that funds will be available the same day a project is completed eliminates the uncertainty and stress associated with delayed payments.
Enhanced Operational Efficiency: With immediate funding, companies can streamline their operations, reducing downtime between projects and increasing overall productivity.
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The solar industry is an integral part of world’s future energy consumption, but there are many challenges running a solar business.
Accounts Payable: Reverse Factoring to Extend Payment Terms
In addition to managing cash flow after project completion, solar companies also face significant upfront costs, particularly when purchasing the materials needed for installations. It’s estimated that up to 40-60% of a solar company’s capital can be tied up in purchasing materials for ongoing projects. Suppliers often require payment on tight terms, adding to the financial pressure. This is where reverse factoring, also known as supply chain financing, comes into play.
It is estimated that 40-60% of a solar company’s capital can be tied up in purchasing materials for ongoing projects.
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Reverse factoring allows solar companies to extend their payment terms with suppliers while ensuring that the suppliers are paid promptly. In this arrangement, a third-party financial institution pays the supplier on behalf of the solar company, and the company then repays the financial institution at a later date. This extension of payment terms gives solar companies the flexibility to manage their cash flow more effectively.
The advantages of reverse factoring include:
Extended Payment Terms: Solar companies can negotiate longer payment terms with their suppliers, reducing the immediate strain on their cash flow.
Improved Supplier Relationships: Suppliers receive prompt payment, which can strengthen relationships and potentially lead to better pricing or terms in the future.
Better Cash Flow Management: By aligning payment schedules with revenue cycles, solar companies can avoid the cash flow crunches that often accompany rapid growth or multiple simultaneous projects.
Delay vendor payments with PayLater
Learn how you can pay your vendors early, enjoy early-pay discounts and pay back up to 90 days later.
Integrated Financial Solutions in Solar SaaS Platforms
As the solar industry continues to embrace these financial strategies, many of the leading solar vertical SaaS platforms have begun integrating factoring and reverse factoring solutions into their systems. This integration makes it easier for solar companies to access these financial tools directly through the platforms they already use to manage their operations, streamlining the process and enhancing efficiency.
The Combined Power of Factoring and Reverse Factoring
When used together, factoring and reverse factoring create a powerful financial toolkit for solar companies. Factoring ensures that companies have immediate access to capital upon project completion, while reverse factoring provides the flexibility needed to manage material costs by extending payment terms. This combination allows solar companies to operate with greater financial stability, take on more projects, and ultimately grow their business more rapidly.
A Brighter Future for Solar Companies
As the solar industry continues to expand, the financial demands on companies within the sector will only increase. Factoring and reverse factoring solutions are tailored to meet these challenges, providing the tools solar companies need to thrive in a competitive marketplace. By offering same-day funding for completed projects, flexible financing options for material purchases, and a seamless application process, these financial strategies are empowering solar companies to accelerate their growth, improve their financial health, and contribute to the global shift towards renewable energy.
Speed up cash collection with FundNow
Learn how you can get paid upfront on your sales invoices.
Comparing the Best Embedded Lenders for Accounts Payable: C2FO, Resolve, Settle, and Lendica
Managing accounts payable (AP) financing effectively can significantly enhance a business’s cash flow and financial efficiency. This post compares four top embedded lenders that offer accounts payable financing or reverse factoring products: C2FO, Resolve, Settle, and Lendica, highlighting their key features and benefits.
Who are the Top Embedded Lenders for Accounts Payable?
1. C2FO
• Overview: C2FO offers flexible early payment options with low fees and seamless ERP integration. Their Name Your Rate® technology allows users to set discount rates, providing customizable solutions.
• Funding Speed: Payments can be received as soon as the next day.
• Advance Rates: Typically between 80-100%.
• Technology: Robust platform with features like Invoice Central for easy management. This enables businesses to accelerate payments and manage cash flow efficiently without changing existing invoicing processes .
2. Resolve
• Overview: Resolve focuses on net terms and cash advances, integrating with common ERP and accounting systems for automated invoice processing.
• Funding Speed: Often within days of invoice approval.
• Advance Rates: Up to 90%.
• Technology: Advanced integration and automation for seamless management. Resolve leverages the buyer’s creditworthiness to offer lower fees and ensures quick access to working capital, making it a reliable choice for improving cash flow .
3. Settle
• Overview: Designed for AP automation and working capital solutions, Settle offers strong integration with accounting software and ERP systems.
• Funding Speed: Typically within one business day.
• Advance Rates: Up to 100%.
• Technology: Comprehensive automation for invoice capture and approval. Settle’s platform helps businesses streamline their financial operations, saving time and reducing manual errors .
4. Lendica
• Overview: Lendica stands out with extensive connectivity, integrating with all public and private ERP and POS systems. Their AI-powered underwriting expands access to capital.
• Funding Speed: Instant funding decisions, typically within 24 to 48 hours.
• Advance Rates: Up to 100%.
• Technology: Advanced AI for smarter underwriting and streamlined processes. Lendica’s broad connectivity and rapid funding make it an exceptional choice for businesses seeking efficient and flexible AP financing solutions.
Comparing the Best Embedded Lenders for Accounts Payable
Category
C2FO
Resolve
Settle
Lendica
Fees
Typically low fees based on discount rates set by users. No upfront costs or hidden fees.
Fees vary; usually lower than traditional factoring, leveraging buyer’s credit rating.
Fees depend on services; competitive and transparent for AP automation and working capital solutions.
Rates start at 1% for 30 days.
Integration with ERP & POS Systems
Seamless integration with various ERP systems; no changes required to invoicing processes.
Integrates with common ERP and accounting systems, providing seamless invoice management.
Strong integration with accounting software and ERP systems to streamline AP processes.
Connects to all public and private ERP and POS systems, offering the widest connectivity in the market.
Loan Terms & Flexibility
Highly flexible; users can choose which invoices to accelerate and set discount rates.
Flexible terms based on buyer’s creditworthiness, ensuring favorable rates and terms.
Flexible working capital and AP solutions with customizable terms based on business needs.
Delay vendor payments up to 90 days with flexible payback schedules.
Funding Speed
Payments can be received as soon as the next day after terms are agreed upon.
Generally fast funding, often within days of invoice approval.
Rapid funding, often within one business day for qualified invoices.
Instant funding decisions, with quick access to funds, typically within 24 to 48 hours after approval.
Advance Rates
Typically between 80-100% depending on agreement with the buyer.
Up to 90% of the invoice value, depending on buyer’s credit rating and terms.
High advance rates, often up to 100%, subject to invoice and buyer terms.
Advance rates up to 100%, leveraging AI for smarter underwriting decisions.
Technology & Automation Features
Robust platform with features like Name Your Rate® and Invoice Central for easy invoice management and early payment requests.
Advanced technology for seamless integration and management of reverse factoring processes.
Comprehensive automation for AP processes, including invoice capture, approval rules, and integration with accounting systems.
Advanced AI-powered technology for underwriting and automated processes. Integrated with ERP and POS systems for streamlined loan and payment processes.
Eligibility Requirements
Accessible to small and mid-sized businesses; eligibility depends on buyer’s participation in C2FO program.
Based on buyer’s creditworthiness; favorable for suppliers with reliable buyers.
Suitable for startups and growing businesses; flexible criteria based on business needs and customer profiles.
Tailored to small and medium-sized businesses with specific requirements based on industry and business model. Expands reach beyond typical lenders using AI.
Why ERP Integration Matters as an Embedded Lender Paying Vendors
Enhance Efficiency
ERP integration ensures that all financial transactions and data are synchronized seamlessly. This automation reduces manual entry errors, saves time, and enhances overall efficiency in managing accounts payable. By integrating with ERP systems, embedded lenders like Settle and Lendica enable businesses to manage their invoices and payments within the same platform they use for other financial operations.
Improve Cash Flow Management
Real-time visibility into payable and receivable accounts is crucial for effective cash flow management. Embedded lenders that integrate with ERP systems provide businesses with up-to-date information on their financial status, helping them make informed decisions and maintain a healthy cash flow.
Simplify Operations
Integration with ERP systems streamlines financial operations, reducing administrative burdens and freeing up resources for other critical business activities. This simplification is particularly beneficial for small and medium-sized businesses that may lack the resources to manage complex financial processes manually.
For instance, Lendica’s ability to connect with all public and private ERP and POS systems ensures seamless transactions and data synchronization, making it easier for businesses to manage their AP processes effectively.
Simplify your process whenever you can.
How to Save Money with Embedded Lenders for A/P
Lower Fees
Choosing the right embedded lender can lead to significant cost savings through lower fees. Lenders like Resolve and Lendica offer competitive rates by leveraging the buyer’s credit rating, which can reduce the overall cost of financing. These lower fees make it more affordable for businesses to access the capital they need to maintain operations and growth.
Automation
Automation features provided by embedded lenders save time and reduce the need for manual intervention in AP processes. For example, Settle’s comprehensive automation capabilities help businesses capture invoices, manage approvals, and process payments more efficiently, reducing the time and labor costs associated with these tasks.
Instant Decisions
Lendica’s AI-powered platform provides instant funding decisions, reducing the wait time and administrative overhead associated with traditional financing methods. This rapid decision-making process allows businesses to access funds quickly, improving their cash flow and operational efficiency.
By utilizing these cost-saving features, businesses can manage their AP financing more effectively, reducing expenses and improving overall financial health.
Lendica’s AI-powered platform provides instant funding decisions… allowing businesses to access funds quickly, improving their cash flow and operational efficieny.
Lendica Lens underwriting guide
The Importance of Eligibility Requirements When Seeking an A/P Facility
Broader Access to Capital
Eligibility requirements play a crucial role in accessing AP financing. Lendica’s AI-driven underwriting expands access to capital by evaluating a broader range of data points, making financing available to more businesses, including those that might not qualify under traditional criteria. This inclusivity is particularly beneficial for small and medium-sized businesses seeking to improve their cash flow.
Flexible Criteria
Settle and Lendica offer flexible criteria tailored to business needs, ensuring that startups and growing businesses can access the funds they need. These lenders consider various factors beyond traditional credit scores, allowing more businesses to qualify for financing and maintain healthy cash flow.
By understanding and meeting these eligibility requirements, businesses can secure the AP financing they need to support growth and stability.
Conclusion: Lendica Outperforms Top Rated Embedded Lenders in Accounts Payable Financing
Lendica stands out among top embedded lenders for accounts payable financing due to its unique features:
• Extensive Connectivity: Integration with all public and private ERP and POS systems ensures seamless transaction handling and data synchronization.
• AI-Powered Decisions: Smarter underwriting decisions expand access to capital, making financing available to a broader range of businesses.
• Instant Funding: Quick access to funds with instant decisions and high advance rates up to 100%.
By leveraging advanced technology and providing broad connectivity, Lendica offers unparalleled benefits, making it the superior choice for businesses seeking efficient and flexible AP financing solutions.
