Parafin, a leading embedded finance company, has launched Pay Over Time, the newest addition to its financing suite. This innovative payment method allows small businesses to defer payments on key expenses such as inventory, equipment, payroll, advertising, and rent directly within their existing platforms, enhancing cash flow management at the point of need.
Pay Over Time broadens access to fast financing by embedding real-time credit decisions at critical moments, such as checkout, invoices, or payroll processing. This approach helps small businesses manage daily expenses while pursuing long-term investments, leveraging Parafln's established track record of extending over $14 billion in offers to hundreds of thousands of users.
Parafin's embedded finance solution stands out by employing large language models combined with proprietary AI to evaluate business financial profiles in real time. Analyzing unstructured banking transactions provides a comprehensive view of business health, enabling approvals in as little as 10 seconds without relying on personal credit scores. Platforms gain from seamless integration, as Parafin handles all aspects of underwriting, compliance, and servicing.
“By harnessing large language models and layering our own proprietary models on top, we can assess the financial profile of businesses in real time and deliver credit decisions with low latency, all while maintaining high approval rates,” said Vineet Goel, Chief Product and Technology Officer and Co-founder of Parafin. “Pay Over Time empowers platforms to support their customers at the exact moment of purchase, payment, or payroll. With this launch, we’re just getting started on building a comprehensive suite of financial solutions designed for speed, scale, and the realities of small business financing.”
The product's versatility is evident in its early expansions beyond payroll into sectors like freight booking, restaurant equipment financing, dental supply procurement, and digital advertising. These applications highlight the demand for adaptable embedded financing that addresses diverse operational challenges in small business environments.
As part of Parafln's growing portfolio, Pay Over Time complements existing capital and credit offerings to deliver a unified set of tools for cash flow optimization and growth investment. This integrated approach ensures businesses receive tailored financing without unnecessary hurdles, fostering resilience in volatile markets.
Pay Over Time represents a strategic evolution in embedded finance, equipping platforms and small businesses with agile tools for sustainable expansion. By prioritizing speed and relevance, Parafin continues to redefine accessible credit, driving efficiency and opportunity across the ecosystem.
Parafin is a financial infrastructure company that provides platforms with access to embedded financial products for their small businesses by abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support. By powering the financial services of marketplaces, vertical SaaS platforms, and payment processors, small businesses can run and grow despite uncertain economic conditions.
Within a few years, Parafin has launched with Amazon, Walmart, DoorDash, and more platforms to serve hundreds of thousands of businesses and has extended over $14 billion in offers. Parafin was founded in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman, and is backed by Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures.
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