Unlock business capital access with embedded finance

Access to credit for businesses is an ongoing challenge for many SMB leaders. In fact, 70% of small businesses reported difficulties accessing capital, according to the “10,000 Small Business Voices” report from Goldman Sachs. For tech-savvy companies serving SMBs, embedding business capital solutions can be the answer to the challenges of this huge addressable market. One specific approach: integrating embedded finance offerings, such as commercial credit cards and spend management solutions, into your product offerings. Providing capital accessibility through embedded finance can help B2B companies address their challenges and deliver significant value to their SMB customers. Here are the six ways how.

#1) Small business financing options can unlock business capital for SMBs

One of the most pressing challenges SMBs face is accessing the business capital they need to cover day-to-day expenses, manage inventory and fuel business growth. According to the Goldman Sachs report, 76% of SMBs say that this challenge has negatively impacted their operations. 

By offering small business financing options through embedded finance solutions like commercial credit cards, B2B companies can provide their SMB customers with much-needed financial flexibility. This not only helps SMBs manage their cash flow more effectively—it also positions the B2B company as a crucial partner in their growth journey.

#2) Building customer loyalty through financial empowerment

Commercial credit solutions enable B2B companies to transition from being mere vendors to becoming valued business partners. By leveraging embedded finance to extend lines of credit, B2B companies can elevate the spending power of their SMB customers and foster long-term loyalty. 

Offering a line of credit creates a stickier value proposition, ensuring that customers remain engaged with the platform. Furthermore, issuing cards at scale and providing access to immediate spending through virtual cards enhances the customer experience, making it easier for SMBs to manage their finances.

#3) Differentiating your business through enhanced spend management capabilities 

In a competitive market, differentiation is key. B2B companies can stand out by extending the value of their products with embedded finance solutions. 

By integrating spend management capabilities, companies can offer their SMB customers:

• Intuitive user experiences

• Granular controls 

• Account hierarchies

• More effective management of their expenses 

• Customizable financial products tailored to their unique needs as business customers 

• Improved customer experience overall

And to further enhance their value proposition, offering 24/7 customer support, real-time spend data and precise spend controls (see section six below for more specifics on how) all help to ensure that B2B companies can differentiate themselves while continuously meeting and exceeding their customers' expectations.

Case study: Torpago 

See how the Torpago spend management platform uses modern card issuing to disrupt traditional corporate card programs with flexible and powerful spend controls, customizable spending limits, virtual cards and more. Read more here.

#4) Accelerating customer acquisition with tailored rewards

Attracting and retaining customers in a competitive environment requires offering value and incentives that resonate with them. B2B companies can drive acquisition and sustain long-term engagement by integrating personalized rewards into their product offerings. 

Tailoring rewards to the specific needs and preferences of SMBs helps establish a compelling value proposition. By launching a commercial credit offering with a robust loyalty engine, B2B companies can manage rewards accrual, tracking and redemption seamlessly, ensuring that customers feel valued and appreciated.

Hear from our senior account executive Michael Hollis about the importance of greater personalization when it comes to creating reward programs for consumers.

#5) Growing B2B revenue with interchange fees 

Embedding commercial financial solutions also presents revenue-generating opportunities for B2B companies. By earning interchange revenue from card transactions, companies can:

• Fund marketing rewards

• Provide added incentives 

• Support their bottom lines

Flexible funding options allow businesses to pick the right model to scale, enhancing capital efficiency and optimizing cash-flow management. Additionally, the ability to drive revenue growth through cross-sell and upsell opportunities further boosts the financial health of the B2B company.

#6) Optimizing B2B spend with comprehensive credit and charge card solutions

Marqeta's comprehensive platform provides:

• Commercial credit cards

• Issuing

• Processing

• Risk management

• Banking

• Program management

It also provides real-time insights on spend, allowing B2B companies to define the spend experience for business customers with precise controls and just-in-time (JIT) authorization. This dynamic experience can be embedded into the company's app or website, further driving loyalty and brand affinity.

Strategic solutions for SMBs’ business capital access challenges

For tech-savvy B2B companies serving SMBs, embedding financial solutions like commercial credit cards and spend management solutions is a strategic move that addresses multiple challenges. These financial products help you:

• Build customer loyalty

• Differentiate product offerings

• Accelerate acquisition

• Generate revenue

By leveraging the capabilities that Marqeta offers, B2B companies can offer a seamless, value-driven financial experience that empowers their customers and drives business growth. In doing so, they transition from being vendors to true business partners, fostering lasting relationships and achieving a competitive edge in the market.

Integrating alternative funding solutions into their product offerings enables B2B companies to provide accessible credit options for businesses. By facilitating capital accessibility through embedded finance, B2B companies can significantly enhance their value proposition, ensuring they remain indispensable to their SMB customers.

Ready to unlock new growth opportunities for your small business? Contact Marqeta today to learn how our embedded finance solutions can help you secure the capital you need.