The rise of embedded finance has revolutionized how businesses access capital, making funding more accessible. From small merchants to larger enterprises, embedded solutions have created new opportunities, allowing companies to access vital funding directly within the systems and applications that they use to run their businesses on a daily basis.

Companies like Square have transformed the retail and service sectors with its seamless merchant cash advance (MCA) tied to daily credit card sales, and Raistone is helping businesses unlock capital across the business-to-business (B2B) supply chain, covering the spectrum of business financing needs.

Square and Raistone are leading the way with embedded solutions

In 2024, Square facilitated an impressive $5 billion in financing volume with micro-loans, empowering small merchants to access the capital they need to grow. Raistone reached the same $5 billion milestone by serving midmarket businesses.

It’s exciting to see embedded finance driving change and growth across different segments of business. Square’s achievements highlight the demand for seamless, integrated capital solutions at the micro level, while Raistone’s success demonstrates how midmarket companies are leveraging embedded finance to optimize working capital and navigate more complex challenges such as long payment cycles and diverse supply chains.

As uncertainty and market volatility continue, the ability to access capital quickly and efficiently is more critical than ever. The growth of embedded finance presents a significant opportunity to support businesses of all sizes, ensuring they have the financial flexibility to thrive.

Embedded finance is not one size fits all

Embedded financial tools offer businesses the ability to unlock capital through their existing technology stack — whether it’s a point-of-sale system, eCommerce platform, procurement software, or ERP. By tapping into the rich, real-time transactional data flowing through these systems, companies like Raistone can deliver faster, more accessible financing solutions.  This data-driven approach streamlines underwriting, eliminates friction, and helps businesses secure the funding they need to scale, without the red tape and delays of traditional lending.

Point-of-sale embedded finance for smaller merchants

Square has earned its reputation as a go-to financing solution for small businesses, particularly in retail, restaurants, and service industries. One of its key strengths lies in its ability to offer an MCA seamlessly through its existing payment processing infrastructure. By analyzing real-time sales data from a business’s point-of-sale system, Square can quickly assess risk and advance funds without requiring a lengthy credit review process. Repayment is automatically deducted as a fixed percentage of future sales, making it a flexible and low-friction option for businesses with fluctuating revenue.

While this solution works well for micro and small businesses, the needs of larger companies — particularly those operating in B2B environments — can be more complex.

Embedded finance for enterprise and B2B needs

Solutions that focus on point-of-sale transactions or consumer-level financing don’t meet the needs of larger companies that operate in more complex B2B environments. These businesses typically deal with longer payment cycles, larger transaction volumes, and more sophisticated accounting and procurement processes. They invoice customers on net terms, manage diverse supply chains, and require financing structures that can accommodate unique circumstances such as customer relationships, leverage ratios, and existing credit facilities.

This is where solutions like accounts receivable financing and supply chain finance come into play. Accounts Receivable Finance (ARF) allows companies to unlock the value of their receivables by getting paid immediately on approved invoices due at a later date. This provides predictable cash flow without taking on additional debt, enabling companies to reinvest in growth, meet payroll, or manage operational expenses more efficiently.

On the other hand, solutions such as Supply Chain Finance (SCF) and Flex Pay give companies the ability to optimize their working capital on the payables side. Supply chain finance leverages a buyer’s strong credit rating to provide early payment options to suppliers while simultaneously allowing the buyer to optimize their working capital. Meanwhile, Flex Pay provides buyers with flexible repayment options without the need to involve suppliers, who continue to be paid on their regular terms.

Raistone provides businesses with the financial flexibility they need to keep operations flowing smoothly, even when payments are delayed or stretched over longer terms. By offering scalable, tailored solutions for businesses with outstanding receivables, enterprise buyers, and B2B transactions, Raistone’s embedded solutions complement Square’s capabilities.

Why expanding capital access matters

Businesses have different working capital needs depending on their size, industry, and payment cycles. Square has pioneered seamless point-of-sale financing for small businesses, offering fast, flexible capital tied to daily sales. Raistone provides structured working capital solutions to midmarket and enterprise companies helping them manage longer payment cycles and complex B2B transactions. Together, these solutions make embedded finance accessible across the entire business ecosystem directly within the systems that they use every day.

As economic uncertainty continues, businesses need reliable access to working capital. Square and Raistone serve different customer segments, but their combined impact ensures more companies can secure the funding they need, when, and where they need it. With embedded finance reshaping the way businesses manage cash flow, Square and Raistone are leading the way in delivering smarter, more customizable financial solutions.

If you’re interested in learning more about the solution we offer or would like to connect with one of our financial experts, please fill out this form or call 888-626-6593.

About the Author

Andrew Baxter, Head of Product and Strategy at Raistone, leads the development of the product roadmap and strategic initiatives. With nearly two decades of experience in product strategy, payments, and financing solutions, he has held leadership roles at SAP and UBS Financial Services. His expertise in scaling financial solutions helps businesses optimize cash flow and access capital more efficiently. At Raistone, Andrew focuses on driving growth and expanding embedded finance solutions to support businesses in today’s evolving economic landscape.

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