Thread by @patio11

Back when I was a Stripe user, my #1 ask for 3 years running was Capital. (Loans based on anticipated future revenue, which my SaaS company had in abundance while my bank account was feeling rather lonely.)

We have now made that capability available for our customers' customers.

https://twitter.com/patrickc/status/1333834822330896384

Historically, banks were the primary point of interaction with the financial system for small businesses, and that interaction was largely mediated by humans.

Increasingly, the interaction is via an online platform, which provides a lot of the front and back office of the SMB.

If, for example, you run a platform which helps connect contractors and home owners, you likely have better data on their businesses' pipelines, revenue history, customer satisfaction, etc than any bank could hope to have.

But you can't easily just offer lending.

We figured out what needed to be done to allow you to do that. Find capital providers, build the legal infrastructure, actually move money to your users and take their repayments, deal with collections in compliant fashion, etc.

You (the platform) get to help users with a core need. The SMBs using the platform get access to non-dilutive capital without a personal guarantee with a minimum of overhead.

(And we can over time use our scale and advantages to continue lowering the cost of it.)

Win/win/win.

And if you like embedded finance, well, keep an eye on the usual spaces in the near future ;)