Embedded lending is one of the hottest trends in fintech, with non-financial brands across industries launching lending products for their customers. But should you build your lending platform or buy an existing solution? Mark Hollemann, co-founder of Sprinque, shares invaluable insights from his four-year journey. Sprinque was a B2B embedded lending provider that achieved $1 million in annual recurring revenue (ARR) and operated across Europe before making the difficult decision to shut down.
In this candid conversation, Mark breaks down the real challenges of building lending products, from underwriting engines to debt financing, and explains why the build vs. buy decision is more complex than most founders realize.
Whether you're a marketplace operator, fintech founder, or non-financial brand considering embedded lending, this episode offers practical frameworks and hard-earned wisdom you won't find anywhere else.
What is Embedded Lending, and Who Should Consider It
- B2B vs. B2C lending products: Buy now, pay later, merchant cash advances, and invoice financing options
- The long tail opportunity: Why traditional banks struggle to serve small businesses and how embedded lending fills the gap
- Marketplace advantage: How platforms with unique data and cash flow control are best positioned for lending success
- Beyond payments: Why embedded lending is becoming a strategic revenue driver, not just a checkout feature
Building Your Own Embedded Lending Platform: The Three Core Components
- Licensing requirements: Navigating regulatory compliance across different markets and products
- Underwriting engine: KYC, fraud detection, and credit decision-making in real-time checkout environments
- Servicing infrastructure: Payment calculations, collections, reconciliation, and customer management systems
- Capital and liquidity: From equity financing to debt facilities and forward flow arrangements
The Hidden Challenges of Building Embedded Lending
- Capital intensity vs. investor expectations: Why lending businesses can't scale at typical SaaS growth rates
- European market fragmentation: How regulatory and cultural differences create multiple local winners instead of continental champions
- Distribution is everything: Why having great technology isn't enough without access to high-quality deal flow
- The collection’s reality: It's easy to lend money, but getting it back profitably is the real challenge
When to Build vs. When to Buy Embedded Lending Solutions
- Core business assessment: Determining if lending is central to your value proposition or just an enabler
- Scale and investment capacity: Do you have the team, capital, and patience for a multi-year build process?
- Customer experience control: How important is it to own the entire lending journey vs. outsourcing it?
- Risk tolerance: Starting with equity, building track record, then securing debt financing partnerships
How to Evaluate and Select Embedded Lending Providers
- Create a structured RFP process: Standardizing information across all potential vendors for fair comparison
- Key evaluation criteria: Pricing, geographic coverage, acceptance rates, and customer experience management
- Reference checks are critical: Speaking with existing merchant partners to understand real-world performance
- Industry and business model fit: Ensuring providers understand your specific use case and customer base
The Future of Embedded Lending and Financial Services
- Banks entering the embedded space: How traditional financial institutions are partnering with fintechs and marketplaces
- Democratizing access to capital: Making financial services available to underserved business segments
- Technology-enabled underwriting: Leveraging marketplace data, payment flows, and real-time business metrics
- Cross-border opportunities: The potential for embedded lending to serve international merchant networks