SME lending
Make effective lending decisions based on customer spending patterns and distribute loan proceeds with speed.
Create a lending service that gives businesses what they want
Access to cash is key when running a business. However, if a business needs a loan, finding ways to borrow that won’t cripple them with fees and charges, or take weeks and months to secure, can be critical to both survival and success.
At the same time, building the ability to put those loans in the hands of the businesses that need to use them to buy materials or services in a secure and flexible way can be very challenging.
Marqeta helps you build a lending solution – now
With our innovative modern card issuing platform, you can create a lending service with rapid decision-making, manage risks and provide physical or virtual cards to the businesses that need money.
Virtual cards allow prospective lenders to fund borrowers instantly on approval and provide them with a physical card to keep them top of wallet, and top of mind for future spend and renewals. Just-in-Time Funding™ means that the funds are only provided at the point-of-sale, reducing risks and minimising tied-up capital.
Plus, rich transaction data helps lenders gain key insights into customer spending patterns, leaving them better equipped to make important lending decisions and drive targeted marketing and loyalty strategies, while also reducing exposure to bad debt.
Real world: SME lending
Lending on a card for better control and insight
Customer applies for loan
The process is typically online and often agreed in minutes.
Loan instantly issued on a virtual card
Physical cards can be issued later to carry branding and stay top of wallet. The lender earns additional revenue through interchange.
The loan is utilised
The lender has visibility of where the loan is spent through Marqeta data insights. Purchases are made wherever Visa and Mastercard are accepted.
Spend evaluated
A complex set of spend controls can be customised to minimise fraud. The lender is able to authorise spend at merchant level, thus reducing the likelihood of the loan being misused.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorisation.
Notification of spend
The lender receives spend notifications, allowing them to extend additional credit lines to the borrower in a timely manner if needed.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real time to complete the transaction. This optimises the loan experience as funds are only accessed at this point and interest begins to be charged.
Transaction completed
Authorisation is successful and the payment is confirmed.
Customer applies for loan
The process is typically online and often agreed in minutes.
Loan instantly issued on a virtual card
Physical cards can be issued later to carry branding and stay top of wallet. The lender earns additional revenue through interchange.
The loan is utilised
The lender has visibility of where the loan is spent through Marqeta data insights. Purchases are made wherever Visa and Mastercard are accepted.
Spend evaluated
A complex set of spend controls can be customised to minimise fraud. The lender is able to authorise spend at merchant level, thus reducing the likelihood of the loan being misused.
Auth requested
Marqeta’s platform is contacted by the appropriate network for authorisation.
Notification of spend
The lender receives spend notifications, allowing them to extend additional credit lines to the borrower in a timely manner if needed.
Funds released
Just-in-Time (JIT) Funding releases funds to the card on approval and in real time to complete the transaction. This optimises the loan experience as funds are only accessed at this point and interest begins to be charged.
Transaction completed
Authorisation is successful and the payment is confirmed.
“Marqeta’s open APIs enabled us to build a world-class issuing platform, which we just wouldn’t have been able to do without building their tech stack on ours.”
Key benefits for small business lending
Instant issuance of virtual cards
Fund loans within minutes of the borrower’s approval.
Physical cards
Easily issue physical cards to drive stickiness and keep the brand top of wallet and top of mind for the borrower.
Dynamic spend controls
Control spend by only authorizing a borrower’s transactions with specific merchants or merchant categories (e.g., office equipment or certain suppliers).
JIT (Just-in-Time) Funding
Reduce fraud and optimise cash flow by authorising transactions and releasing funds in real time.
Webhooks
Enable real-time communications with the borrower (e.g., when a borrower makes a purchase, the lender sees the transaction and can offer the borrower additional capital).
Data Insights
Derive rich insights into customer spend to offer targeted loans or funding options, grow loyalty and/or identify and onboard popular merchants to grow a portfolio.
