NMI Expands Business Capital Lending Program for Small Merchants

Embedded payments infrastructure company NMI is expanding its NMI Business Capital service to help more merchants access financing, according to a Wednesday (Sept. 23) press release.

“The expansion reflects NMI’s focus on helping small businesses get the funding they need to be successful,” the release said. “For many merchants, that need comes at a very specific moment. Stock needs to be ordered ahead of a busy season, equipment needs replacing, an unexpected expense hits cash flow, or an opportunity arises to hire, expand or invest in growth.”

Obtaining financing via traditional channels can mean a separate application process, long approval times and uncertainty over whether money will be there when needed, according to the release. Business Capital gives merchants a simpler way to access financing through the platforms they already use to run their businesses.

“The new financing options extend that support to a broader range of businesses,” the release said.

Term loans are geared toward more established merchants that might need larger amounts of capital and would rather deal with a monthly repayment schedule. Starter offers, meanwhile, are designed for newer businesses, including those with a limited credit history, according to the release.

“Small businesses need different types of support at different stages of their growth,” NMI Product Manager Jason Ruckman said in the release. “Our goal with Business Capital is to help more of them access the funding they need to build successful businesses, while making it simple for our partners to offer that support.”

Meanwhile, embedded finance seems to have “crossed a revealing threshold,” PYMNTS reported Sept. 7.

The PYMNTS Intelligence report “Embedded Finance as a Strategic Initiative” found in October that 93% of businesses ran into friction when using the financial tools built into their customer or employee platforms. However, 93% said they were highly satisfied with those capabilities, with 94% planning to increase investment over the next three years.

In June, NMI CEO Steve Pinado told PYMNTS that businesses are factoring cost, speed, settlement requirements and customer preferences into their money movement decisions. The move is transforming the role of payment providers, causing them to look past transaction processing and toward helping businesses navigate a rising number of payment choices.