The low-lift integration counters traditional lending processes by getting funds to business owners via the software solutions they’re using today
Clearent by Xplor, a prominent U.S. payment processor under the umbrella of Xplor Technologies, has introduced Xplor Capital – a groundbreaking embedded financing solution designed for software providers and their merchants. This innovative offering is made possible through a strategic partnership with Parafin, a leading ‘capital as a service’ platform specializing in financing solutions for small and medium-sized businesses (SMBs). Building on the success of Xplor Capital’s initial launch for small businesses, this expanded version empowers Software-as-a-Service (SaaS) providers to seamlessly integrate merchant financing directly into their software ecosystems.
The demand for accessible and fast financing solutions continues to grow, with 67% of U.S. small-business owners planning to seek funding in the coming year.1 However, 77% of these business owners express concerns about their ability to obtain capital, reflecting widespread apprehension amid a challenging lending environment.
Xplor Capital enables SaaS providers to foster merchant growth by offering rapid, hassle-free access to funds – without the complexities associated with traditional financing methods. Clearent by Xplor’s embedded payments infrastructure, in collaboration with Parafin, equips software providers with the capability to offer pre-approved funding options to their customers. These funding options are based on sales data rather than credit scores, driving growth and enhancing user engagement within software platforms.
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“Cash flow is the most critical enabler of small business success, and the ability to access capital easily within SMB software ecosystems is a game changer,” said Nick Campbell, Chief Product Officer, Payments at Xplor Technologies. “With Xplor Capital, software platforms offering our embedded payments suite of tooling can now extend efficient access to the capital merchants need – embedded within the software solutions they use every day to drive their business.”
Through Xplor Capital, software providers can offer merchants flexible funding options, enabling them to invest in business expansion, manage cash flow efficiently, and address operating expenses. The program is designed for minimal implementation effort, making it accessible for SaaS providers.
Key Benefits of Xplor Capital:
- Streamlined Financing: Merchants receive pre-approved funding based on their sales volume, bypassing lengthy applications and traditional credit evaluations.
- Integrated Growth Solution: Seamlessly integrate Xplor Capital with a user-friendly API or branded loan widget, enhancing the value proposition of the software.
- Boosted Revenue: Businesses leveraging financing often experience increased revenue streams.
- Transparent, Predictable Repayment: Merchants repay through a fixed fee and automated deductions from sales, without hidden interest or late fees.
As traditional loan applications continue to decline,3 alternative funding solutions are gaining traction. “Xplor Capital eliminates the hurdles of lengthy submission forms and extended waiting periods – if approved, funds are available in as little as one business day,” confirms Michelle Van Horn, VP Product Partnerships at Xplor Technologies. “With up to two-thirds of small business owners now relying on personal savings to fund their business,4 the need for quick and adaptable capital solutions has never been greater.”