Adyen has rolled out its Capital offering in Canada, allowing platform businesses to extend short-term loans to the small and medium-sized enterprises (SMEs) that use their services.
The new feature is aimed at addressing cash flow gaps and funding needs among Canadian SMEs by enabling platforms to integrate lending directly into their operations.
The introduction of Capital comes in the context of persistent challenges for Canadian SMEs in accessing timely financing. While traditional banks remain a key source of credit, delays in funding, often up to two weeks, have led some business owners to seek support from personal networks. According to research commissioned by Adyen in partnership with BCG, 57% of SMEs in Canada use short-term loans for operational investments such as equipment, yet only 28% currently use platform-based lending options. The findings suggest that digital platforms remain an underutilised avenue for financial access, presenting an opening for embedded finance tools.
Embedded Lending built into the platform services
Through Capital, eligible SMEs can apply for funding with minimal documentation and receive disbursements within hours. Repayments are deducted automatically from daily sales at a fixed percentage, and borrowers are presented with a single upfront fee rather than interest-based terms or late penalties.
According to Adyen officials, the company handles the underwriting process by leveraging transaction data from the platform, streamlining eligibility checks and removing the need for formal loan applications. This structure is intended to help SMEs obtain working capital more efficiently than through traditional financial institutions, while also enabling platforms to generate additional revenue without assuming credit risk.
Epos Now, a retail-focused platform that provides point-of-sale and payment services, has integrated Adyen Capital into its Canadian operations. A representative from Epos Now noted that the expansion into Canada allows the company’s merchants to invest in growth opportunities more easily through platform-based financing.
Adyen officials emphasised that the loan product not only provides quicker access to funds for SMEs but also helps platforms retain customers and diversify their revenue sources through loan-related income sharing.
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