Liberis and Elavon Add Another Option to the Booming Embedded Lending Market

The embedded lending space just got a little more crowded. Liberis, the global embedded finance platform, has partnered with Elavon, a U.S. Bank subsidiary, to launch Quick Capital—yet another revenue-based financing solution now available to small businesses through their payment processor's platform.

Another Player in a Growing Field

This partnership brings Liberis' funding capabilities to over 275,000 U.S. merchants through Elavon's merchant portal, joining the expanding roster of embedded lending options that have been proliferating across payment platforms, POS systems, and business software providers. While it's certainly a welcome addition for businesses seeking capital, it represents the continued growth of an already robust market rather than a revolutionary breakthrough.

The embedded lending sector has been experiencing significant momentum as more payment processors and fintech platforms integrate funding solutions directly into their core offerings. Liberis and Elavon are essentially following a well-established playbook that companies like Square, PayPal, and Stripe have been executing for years—leveraging merchant payment data to offer quick capital solutions.

Market Conditions Drive Demand

The timing aligns well with current market needs. The Fed's 2024 Small Business Credit Survey revealed that 41% of U.S. small businesses experienced decreased revenues for the first time since 2021, creating sustained demand for flexible funding options. This economic backdrop has created fertile ground for embedded lending providers, with businesses increasingly open to alternative financing when traditional bank loans prove too slow or restrictive.

Liberis CEO Rob Fairfield highlighted the persistent challenge: "When we talk to small business owners, they tell us the same thing again and again—they're drowning in paperwork just trying to get the funding they deserve." While this pain point is real, it's one that numerous embedded lending platforms are already addressing with similar solutions.

Standard Features for a Competitive Market

Quick Capital offers what has become the standard feature set in embedded lending: minimal paperwork, fast approval decisions, revenue-based repayment terms, and integration within the existing merchant platform. Eligible businesses across healthcare, retail, services, and restaurants can access funding for typical needs like inventory, marketing, expansion, and cash flow management.

The solution uses Elavon's merchant data to streamline underwriting—an approach that's become commonplace among payment processor-based lending platforms. Elavon CEO Jamie Walker emphasized their focus on cash flow-friendly solutions: "Quick Capital allows our merchants to access capital through a simple, streamlined process and solutions that work with their cash flow."

Proven Model, New Market Entry

This U.S. launch expands Liberis' existing European partnership with Elavon, bringing their track record of funding over 50,000 businesses with more than $3 billion to American merchants. Elavon's substantial reach—serving over 1.3 million customers and holding strong positions in airlines, hospitality, healthcare, and retail—provides Liberis with a solid distribution channel.

However, Elavon joins a competitive field of payment processors offering embedded lending. The market has matured considerably, with established players having already captured significant market share and built strong relationships with their merchant bases.

Market Expansion Continues

The Liberis and Elavon partnership underscores the embedded lending market's continued expansion and the ongoing appetite from both providers and merchants for integrated financial solutions. For payment processors, offering capital solutions creates additional revenue streams and deepens merchant relationships. For businesses, having multiple embedded lending options means more choice and potentially better terms through competition.

Both companies indicate plans for additional product development based on merchant feedback and market demand, suggesting we'll see continued iteration and expansion of their offering—typical of the competitive dynamics driving innovation in this space.

Adding to the Options

For small business owners, the Liberis and Elavon partnership represents another viable funding option in an increasingly diverse landscape. While it won't necessarily transform how businesses access capital—that transformation has been underway for several years—it does add to the growing menu of embedded financing solutions.

The real beneficiary here may be the broader embedded lending market itself. Each new partnership and platform launch reinforces the viability of integrated funding solutions, potentially attracting more businesses to consider alternatives to traditional lending. As the market continues maturing, the focus will likely shift from simply offering embedded lending to differentiating through specialized terms, industry focus, or enhanced user experience.