Embedded lending provider finmid has partnered with Teya to offer financing to merchants in Croatia and Hungary.
The partnership gives local businesses using the Teya platform access to personalised, pre-approved financing. Offers are calculated using real-time performance data generated within the Teya platform, and the product operates as a merchant cash advance, with repayments linked to monthly revenue. According to the companies, funds are disbursed in an average of three minutes, and merchants can use the capital for purposes ranging from equipment purchases to marketing.
During the early stages of the partnership, more than 500 Teya merchants have received financing, with the product recording a Net Promoter Score (NPS) of 86.
Addressing financing barriers in CEE
The partnership targets a gap in access to capital for SMEs in Central and Eastern Europe (CEE), where businesses continue to face obstacles such as limited credit histories, insufficient collateral, and outdated bank processes. By basing financing decisions on performance data already held within the merchant’s platform, the companies aim to reach businesses that remain underserved by conventional lending channels.
Sahithya Vemana, Head of Banking at Teya, said that access to capital at the right moment is central to the company’s goal of supporting local businesses. Vemana added that the merchant cash advance model, embedded in Teya and with repayments tied to sales, is being introduced to EU markets where it was not previously available, starting with Croatia, Hungary, and Portugal.
As part of the agreement, finmid joins Teya’s pan-European marketplace as a full-stack financing partner. In this capacity, the company covers underwriting, compliance, servicing, and capital provision for platforms and their merchants.
Founded in 2019, Teya serves more than 80,000 local businesses across nine European markets with payments, business accounts, and expense management tools. The company is regulated in the UK and the EEA.
Embedded lending across platforms
finmid provides an API that allows platforms to launch financing products for their business customers across 30 European markets through a single integration. Teya joins other platforms using finmid as an embedded lending partner, including Bolt, Wolt, Delivery Hero, Just Eat Takeaway, Guesty, and FREENOW.
According to finmid, merchants across its programmes typically see sales increase by up to 45%, with NPS scores above 80, while 80% of businesses renew their financing. Platform partners, the company states, record a 70% reduction in churn, pointing to the role of embedded financing as a retention tool for platforms as well as a source of capital for merchants.
Max Schertel, co-founder and CEO of finmid, noted that small businesses in Croatia, Hungary, and Portugal show strong demand for growth capital, but have lacked the infrastructure to access it quickly and on fair terms.
