Over the past 15 years, I’ve seen small business lending in Canada evolve significantly. But one thing has stayed the same: small business owners are always busy. They’re managing everything from staffing and inventory to marketing and daily operations. When a financing need arises, they don’t have time to research options or navigate a lengthy application process.
They need access to capital that is fast, convenient, and built into the tools they already rely on. That’s where embedded lending makes a real difference.
What is embedded lending?
Embedded lending integrates financing directly into the platforms businesses already use. That could be a point-of-sale system, an online accounting platform, or a digital banking app. Instead of searching for a loan, business owners are offered pre-qualified financing right inside their everyday tools.
For example, if a retailer is using a commerce platform to manage orders and payments, they might receive an offer for $30,000 in working capital without ever leaving the dashboard. The offer is informed by real-time data from the platform, making it fast, seamless, and far more convenient than a traditional process.
Why it matters in Canada
In the United States, embedded lending has already gained serious traction. We are now seeing that momentum shift into Canada. More platforms are adding financial services, and small businesses are increasingly expecting them.
There are two big reasons why this matters right now. First, Canadian businesses are operating in uncertain conditions. Rising costs, supply chain issues, and cautious consumer spending all create pressure. Business owners want to know what financing is available before a challenge arises.
Second, embedded lending meets the demand for speed and simplicity. Rather than navigating a separate loan process, business owners can access funds from within the tools they are already using. It saves time and reduces stress.
Who benefits the most
While most small businesses can benefit from embedded lending, it’s especially useful for industries that banks have historically underserved. Think of restaurants, retail shops, or auto repair businesses. These businesses often have solid operations but struggle to access capital through traditional channels.
Embedded lending helps close that gap. It uses the business’s performance data, like sales volume, transaction history, and cash flow, to deliver smarter credit decisions. It also works best when businesses use unified systems for payments, inventory, and banking. The more complete the picture, the better the financing options.
What makes it challenging
Building embedded lending solutions is complex. Integrating with partner platforms requires technical coordination and ongoing support. Once the integration is live, we also need to educate business owners. They need to understand how it works, why it’s safe, and what makes the offer right for them.
There is also the question of regulation. In Canada, we have strong privacy standards and important protections in place. That’s a good thing! But it does mean we need smarter infrastructure for secure data sharing. This is where open banking can make a big impact.
How open banking can help
Right now, lenders often rely on third-party tools to pull bank data. These tools are useful, but they involve workarounds that aren’t ideal for privacy or user experience. Open banking would allow small businesses to securely authorize data sharing between their bank and their lender using standardized APIs.
This change would make everything more efficient. Lenders could offer better decisions based on more complete data. Business owners would spend less time uploading documents or entering information manually. The entire experience would feel more modern and more secure.
Our vision at Journey Capital
At Journey Capital, we’ve built our lending platform specifically for Canadian small businesses. We’ve focused on speed, transparency, and flexibility from the beginning. Now we’re bringing that same approach to embedded lending.
Partnerships have also always been part of our approach, and by partnering with point-of-sale providers, commerce platforms, and digital banks, we can embed expert lending into their ecosystems and create a better experience for everyone involved.
We’re already working with several partners and are continuing to grow this side of the business, it’s a key part of our strategy. Will it be part of yours?