In today’s ultra-competitive environment, businesses need to develop innovative strategies to accelerate growth. With minimal cost outlay and high impact value-add, embedded financial services have emerged into one of the most efficient ways to generate sustainable product-led growth.
Sustaining long-term growth can prove challenging in today’s competitive business landscape. So how can SaaS companies drive growth, improve product adoption across the board, and become a one-stop shop for SMB customers’ needs? The best strategy for SaaS companies to execute is to expand their range of products — which enhances customer satisfaction and solidifies long-term growth trajectories. SaaS companies can supplement their original offerings by embedding financial products to create a stickier business model. Because let’s face it: someday your SMB customers will want something beyond your core offering. And you should still be the one to give it to them.
Leading with Embedded Financial Products
Product-led growth is a concept at the vanguard of today’s marketing ecosystem. Product-led means you’re leading with a product, not a sales pitch. As your customers find new useful products in your inventory, you’ll increase not just your sales — you’ll increase the security of your client base.
Many Saas platforms are turning to financial services as an entry point for product-led growth. Think of all the daily tasks your SMB customers perform to conduct business — from payroll, to accounting, to managing invoices. By leading with embedded financial products, you can establish a well-rounded relationship with your customer base. When you become your customers’ source of capital, you help them avoid the lengthy processes and unnecessary hurdles traditional financial institutions require.
Washing Away the Misconceptions
With the rise of embedded lending, there are plenty of questions surrounding this new and dynamic product. To clear up how SaaS companies can use capital as a service, here are some common misconceptions people have about embedded lending.
- Embedded lending takes lots of engineering and product resources. FALSE. Your SaaS company can install Lendflow’s embedded software in a matter of minutes. Just enter a few lines of code, and embed the Lendflow widget into your own website. Lendflow takes care of the rest. We provide backend support and help SaaS companies develop GTM strategies to launch their new capital program. We monitor and manage the capital application flow, ensuring that all documentation is provided for a fast approval and funding process. We work with SMB customers to fulfill your mission of meeting all of their capital needs.
- Embedded lending is too complicated for your SMB customers. FALSE. The lending industry used to be plagued by inefficiencies — that’s why we built Lendflow. A smooth and simplified user experience is one of Lendflow’s hallmarks. With ready-made data on-hand given the pre-existing client relationship, our embedded lending platform gets capital to your SMB customers faster than a bank ever could. SMBs now get fast access to capital from within a trusted product that they already use. The result becomes a much less complicated — and more reliable — loan process for your SMB customers compared to traditional lending routes.
- It’s hard to measure ROI for embedded lending. FALSE. Lendflow provides our customers with a dashboard for keeping track of ROI. In fact, your dashboard contains comprehensive data on loan applications, allowing you to analyze your ROI and other KPIs over time. We also offer a revenue sharing model in which SaaS companies earn revenue for every loan originated within their platform. With Lendflow’s metrics, you can make sure you’re consistently getting the best results from your embedded lending program.
- Embedded lending dilutes my brand and customer experience. FALSE. Partnering with Lendflow doesn’t mean your SaaS company simply outsources your SMB customers’ capital needs to a third-party provider. Rather, Lendflow offers a complete white-label solution. We provide a customizable widget that aligns with your brand standards. A branded call experience with a funding advisor similarly ensures your brand remains front and center as your customers apply for capital. In other words, with Lendflow, your brand is the only one your customers will ever see.
Win the Value vs. Cost Equation Today
The cost of running an embedded financing program is low — and the return on investment is what keeps SaaS companies coming back. With a minimal commitment of product and development resources to get your own capital program up and running, you can all of a sudden capitalize on a new product that improves customer satisfaction. Embedded lending reduces friction for your customers — with software and capital all in the same place, you can be the go-to resource for all things SaaS and beyond.
Product-led growth ultimately requires action. With Lendflow, taking action is easy. Once you embed Lendflow’s platform into your product with a user-friendly widget, your SMB customers can access all the lending resources they’ll ever need. Our embedded lending platform leverages your existing customer data, positioning you to provide capital to qualified SMBs much faster than a bank can.
At Lendflow, embedded lending is what we do. Leverage our expertise so you can focus on yours. Get started with Lendflow today.