A shift is upon us. Traditional financiers, such as banks and equipment finance companies, now face very real competition from non-traditional financial providers that embed lending options directly into business platforms. These providers—Square, PayPal, Stripe, and others—leverage technology and real-time business data to offer seamless, tailored financial solutions.

Embedded finance has grown exponentially, with the global market projected to reach $248 billion by 2032, growing at a compound annual rate of 23.5% from 2023. PayPal Working Capital, for instance, has funded over $20 billion to 1 million businesses, while Square Capital has financed more than $4 billion in loans annually. Stripe Capital is also rapidly expanding, using its payment infrastructure to provide flexible funding to small businesses.