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Ability for the lender to see in real-time the merchant’s income
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Access to merchant account and instant change notifications
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Seamless transactions
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Smooth operations
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Meeting the lender's needs to access real-time loan data
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Ability to easily access merchant account and get change notifications on balances, debit on income, etc.
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Seamless and speedy payment flows for end-users
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All-in-one financial solution
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Simple API integration
About
Softloans provides an easy-to-use embedded lending solution that businesses can integrate into their own platforms to offer revenue-based loans to their merchants. This means businesses such as e-commerce merchants can get financing through the platforms they already use.
Challenge
Softloans wanted to offer revenue-based financing solutions to electronic money institutions and e-commerce platforms, focusing on web-based merchants and digital service providers. The reasoning behind this was simple. Revenue-based financing is able to provide lenders with real-time tracking of merchants’ incomes, making it possible to flag irregularities early, thus reducing the risk of bad debts. However, implementing this model posed significant challenges.
To make this vision a reality, Softloans required access to merchant accounts, balance change notifications, and the ability to debit income for loan repayments based on pre-agreed conditions. To establish this, a robust payment infrastructure needed to be put in place which could support seamless transactions and accurate data management.
Embedded lending services are all about user convenience. The whole idea is about creating opportunities for small and medium-sized merchants to access working capital through the platforms they already use in their business. Cooperation with ConnectPay is crucial in creating smooth processes and great customer experiences for both our partners and their business customers.
Audrius Griškevičius
CEO and Co-Founder Softloans
Solutions
To address Softloans’ needs for frictionless payment flows, we at ConnectPay provided a comprehensive solution for IBAN accounts, SEPA Instant payments, and internal payments. To make financial solutions easy, we enabled merchant onboarding, managed a custom set of consents, and ensured precise payment data collection via APIs. And because compliance is built into our embedded finance solution, we were able to handle it on our side, allowing Softloans to focus on developing their business.
We provided consultancy on custom payment flows and updated our APIs to meet Softloans’ needs. Our in-house expertise in Know Your Customer (KYC) and Know Your Business (KYB) processes ensured swift merchant onboarding, which is crucial for embedded lending.
Initially, some of our requirements seemed high, but through discussions, Softloans recognized that our high standards ensure sustainable business operations. Clear API documentation, strong development support, and excellent day-to-day integration assistance, including prompt additional sessions and quick decision-making, not only contributed to a smooth and successful implementation for Softloans but also guaranteed sustainable operations in the long run.
Results
The successful integration of the embedded finance solution for Softloans was achieved within a swift timeframe of just 2 months. Commencing with a silent launch and a semi-manual onboarding process for the initial companies, Softloans meticulously aligned and calibrated the exact requirements of onboarding, tested communication channels, and ensured a seamless flow of information.
Since then, Softloans has transitioned to onboarding customers via API, further enhancing efficiency and streamlining processes. The optimization of payment processing time has helped to ensure efficient and effective transaction flows.
The payment flows we tailored for them cover all of Softloans business needs, allowing them to successfully implement their revenue-based financing model. With our all-in-one financial solution and built-in compliance, Softloans can focus on what matters the most – scaling their business.
