Embedding Credit into B2B Payment Flows

Unleashing the Power of BaaS and Data-driven Liquidity.

As interest rates continue to rise, the working capital challenge is brought into sharp focus for both SMEs and corporates.  For the SME market, the ability to access credit efficiently and seamlessly has become a vital requirement in sustaining the business.  For corporates, maximizing working capital efficiency has become a source of considerable competitive advantage.  While traditional banks have long been the go-to source for business financing, their restrictive lending practices and legacy technology often limit SME and corporate customers from accessing the funds they need in a timely fashion and put a brake on working capital optimization, stalling business objectives and growth.

However, with the emergence of Banking-as-a-Service (BaaS) providers and the innovative concept of embedding credit into B2B payment flows, a new era of financial empowerment has dawned.

The Power of Embedding Credit

Whilst embedded payments and financing have changed the B2C experience over the last few years, embedding the more complex payment and credit flows into B2B businesses is still at an early stage, complicated by the requirement to work with a range of accounting, ERP, and treasury management systems.  The opportunity to revolutionize B2B payment flows, however, means that the opportunity is significant. BaaS technology companies, such as Bankable, are at the forefront of this financial transformation. By integrating alternative credit offerings directly into their proprietary B2B payment infrastructure, they enable businesses to leverage unlimited credit as a strategic tool to optimize cash flow and seize growth opportunities. All accessed through simple plug-and-play API connectivity.

One of the key USPs of embedding credit into B2B payment flows is the ability to provide bespoke financing products. Traditional banks often rely on underwriting methods that fail to capture the true potential of SMEs based on their historic accounting or real-time financial data. With its recent acquisition of AREX Markets, Bankable’s technology has the power to analyze a vast array of data points to assess creditworthiness accurately. This data-driven approach ensures that credit products are designed to cater to the specific needs of businesses, empowering them to access the optimum amount of liquidity required for growth.

Equally as challenging in the large corporate space is the lack of flexibility in accessing credit. Traditional providers take a rather fixed approach to approving and provisioning credit via solutions such as revolving credit facilities which incur cost and time just to set up. The new generation of BaaS providers can be far more dynamic in approving and provisioning the right amount of funds, at the point of need, thus minimizing costs and maximizing the working capital efficiency.

By integrating financing into the payment process, businesses can access immediate liquidity and bridge the gap between payables and receivables through invoice or purchase order financing. This enables companies to maintain a healthy cash flow, facilitating timely payments to suppliers and enabling them to seize new growth opportunities.

Seamless Integration with Payment Flows

By seamlessly integrating credit offerings and liquidity options into B2B payment flows, BaaS providers eliminate the need for businesses to navigate multiple platforms and lengthy loan application processes. This streamlined approach allows companies to access credit at the moment they need it most, without disrupting their day-to-day operations. Whether it’s bridging short-term cash flow gaps or investing in expansion plans, the ability to access credit on-demand is a game-changer for SMEs and corporates.

The BaaS market has witnessed tremendous growth in recent years, driven by the increasing demand for flexible financial solutions. Traditional banks now have the power to better serve their SME and corporate customer by leveraging BaaS providers for their unique credit offerings, and ability around time to market for new solutions. Furthermore, the growing ecosystem of BaaS providers is fostering competition and innovation, resulting in better products and services for businesses.

While the BaaS credit market is still in its early stages, its potential is undeniable. As more companies recognize the advantages of embedding credit into B2B payment flows, the market is poised for rapid expansion. However, to truly unlock the potential of credit products for businesses, the focus must remain on leveraging data to drive liquidity.

The Future of BaaS

The integration of financing options such as credit into B2B payment flows is revolutionizing the financial landscape for businesses, and BaaS providers like Bankable are leading the pack. By leveraging data-driven insights derived from accounting and payment data, Bankable can offer complementary credit products tailored to the specific needs of both small SMEs and large corporates alike. This approach empowers businesses to access the liquidity they need to fuel growth and seize opportunities whilst simultaneously empowering banks and other enterprise platforms to better service more of their customers.

It is crucial for the financial industry to recognize that true credit products should be designed to embrace the unique challenges faced by SMEs. By harnessing the power of data, BaaS providers can bridge the gap between the underserved SMEs and the credit they deserve. It is time for a new era of inclusive BaaS and credit solutions that empower smaller businesses to thrive, and BaaS is at the forefront of making that a reality.

As the financial landscape continues to evolve, the integration of credit into B2B payment flows offers a promising path towards a more inclusive and efficient financial ecosystem, where all businesses have access to the credit they deserve.

About Bankable

Bankable is a global architect of innovative payment solutions enabling Banking as a Service. We enable and serve dominant financial institutions, corporates, and FinTech entrepreneurs to bring to market highly differentiated payment solutions supported by a very strong, immediate business case. Bankable is a founding member of Innovate Finance.

BaaS pioneer Bankable acquires embedded finance platform Arex Markets.

Embedded working capital and unlimited liquidity will enhance the breadth of the Bankable banking infrastructure core proposition.

London, UK– 15th of June 2023 – Bankable, a pioneer in the Banking-as-a-service industry, today announced the acquisition of Arex Markets, giving the combined company the ability to embed credit and working capital into the payment flows of established neobanks, multinational brands and fintech platforms. Arex Markets’ proprietary technology enables investors to finance a variety of commercial papers to seamlessly speed up payment flows and ease the working capital challenge.

As BaaS and embedded finance solutions continue to proliferate, the B2B finance space continues to struggle with quick and flexible access to liquidity solutions, whilst investors continue to search for the right balance between risk and yield. The legacy banking system has not been able to provide the ability to offer credit and working capital solutions which can be embedded in transactional flows as diverse as accounts payable, invoicing, cards issuing and cross border supplier payments. Which forces businesses to consider alternative private financiers or carrying additional costs on their balance sheet.

Bankable will add working capital (flexible invoice financing , corporate credit cards, lodged cards and revolving credit) to the existing API-first digital platform.  Customers will have the ability to become ‘Bankable’ and build cards, payments, and credit solutions on top of the Bankable virtual account core in minutes. Through extensive investor partnerships, Bankable can offer unlimited working capital matched with an extensive portfolio of relevant customers.  Early use cases for the combined offering are being rolled out in the B2B wholesale travel sector for working capital support on supplier payments; supporting pan-European scale-up fintechs and neo-banks to take the next step in building net new revenues from credit cards; and working with global consumer brands to establish a single payments solution tailored to their needs.

Core to the Bankable approach is working as a friend to the established banking industry and Bankable is working closely with several tier 1 institutions to welcome them as new investors on to the platform providing them with an additional route to deploy capital quickly and flexibly.

Eric Mouilleron, CEO & founder of Bankable: “Together with Arex Markets, we share the same entrepreneurial culture and ambition. Thanks to our complementary assets and strong alignment of our teams, we can attract premium clients seeking to develop a uniform pan-European banking offer leveraging our best-in-class API platform including credit. This partnership clearly sets us up with the richest Bank as a Service offer for premium clients with clear multi-country ambitions.”

Airto Vienola, CEO of Arex Markets, added: “Bankable and Arex share the same mission: to offer embedded financial services across Europe to fintechs, established businesses and brands. Together with Bankable, we offer both a formidable infrastructure powered by the best technology that gives access to banking-related services that are modular and easy to integrate, and the deepest product breadth in the Bank-as-a-Service European market, covering accounts, cards and credit.”


About Bankable:


Bankable is a global digital core banking platform and Banking as a Service provider. We help financial institutions, corporates and fintech deploy, orchestrate, and operate highly differentiated payment solutions with quick time to market.

About Arex Markets


AREX Market operates a marketplace connecting businesses with institutional investors unlocking capital by giving them access to an entire suite of credit solutions. AREX’s mission is to drive the cost of financing down so hard-working businesses can retain more of their money and focus on their business.

Bankable contact: pr@bnkbl.com