Embedded lending is growing, with Bain predicting that volume will double from 2021 to 2026.
Nowhere is this trend more potent than in lending to small and medium businesses (SMBs) that have historically struggled to access capital. The benefits are clear for B2B SaaS lenders – increased revenue, customer loyalty, and compounding platform value.
However, while incorporating embedded lending has many advantages, most SaaS companies are not designed to do this independently. Lending requires highly specialized talent, capital, and adherence to strict compliance requirements. It takes a long time to get lending right with few viable shortcuts – a problem when speed of execution is of the essence.
Enter Prime, a no-code, fully customizable lending platform for SaaS platforms ready to unlock embedded lending in less than a week.
About Prime
Prime is a vertically integrated, full-stack lending solution for SaaS platforms offering capital programs to SMB customers. It offers software to pre-qualify and target prospects, underwrite applicants, and, in partnership with Canopy, manage the entire loan lifecycle.
They support a variety of tailored financial products through their platform, including:
- Working Capital
- Equipment Financing
- Invoice Financing
Prime is not a balance sheet lender. Instead, it partners with financial institutions that want to lend to small businesses but lack in-house embedded finance capabilities or the deep data science expertise that its team brings.
The Challenge
A major component of Prime’s value proposition is offering a full-stack solution to platforms, and as a result, Prime needed to get servicing right. However, given the heavy investment in Prime’s core data science competency in building proprietary and differentiated pre-qualification and underwriting engines, Prime chose not to build servicing from scratch.
We wanted to partner with a best-in-class loan servicing provider to offer an outstanding experience to our partners and borrowers. We didn’t have the time (or budget) to build servicing ourselves, and were incredibly impressed with what the Canopy team had to offer. Prime supports several product types, and working with a servicing partner that could keep up with the variety we require was essential.”
The Solution
After considering several options, Prime partnered with Canopy to power its servicing engine. Canopy’s platform enabled Prime to focus resources on its core competencies—data science and capital markets—while offering a stellar servicing experience.
Canopy has also allowed Prime to move faster, introduce and support new products in weeks, and meet client reporting requirements in real-time.
Since implementing Canopy, we can make changes to our products significantly faster (e.g., adding or changing terms) and have been able to launch new products quickly – we were able to launch a new origination fee product in less than a month.”
We also don’t worry about issues with servicing or our system of record, since we know Canopy is on the case. Thanks to them, we have also been able to highlight our servicing platform as a core component of our offering.”
Prime’s capabilities with Canopy
Meeting enterprise-level requirements
Able to Build a New Custom Product
Prime was able to accommodate their client’s custom product build requirement in less than one month.
A beautiful interface
Upgraded Servicing Portal
Prime has deployed an improved, polished, professional servicing portal for borrowers.
Addressing edge cases in one place
Embracing One System of Record
Prime has been able to support all edge case servicing requirements of its lending clients from day one.
This partnership made it possible for Prime’s clients to:
- Offer a comprehensive servicing solution as part of their embedded lending programs
- Support a borrower-facing servicing dashboard
- Launch with products customized to their needs and audience
- Feel proud of the servicing experience their customers have
Ready to launch your next lending product?
Canopy’s modern business loan servicing platform helps fintechs and SaaS providers service accounts via APIs and automation. This flexibility improves borrower repayment rates, helps lenders launch capital products and variants faster, and significantly decreases the cost of servicing.
