Comparing the Best Embedded Lenders for Accounts Payable

Comparing the Best Embedded Lenders for Accounts Payable: C2FO, Resolve, Settle, and Lendica

Managing accounts payable (AP) financing effectively can significantly enhance a business’s cash flow and financial efficiency. This post compares four top embedded lenders that offer accounts payable financing or reverse factoring products: C2FO, Resolve, Settle, and Lendica, highlighting their key features and benefits.

Who are the Top Embedded Lenders for Accounts Payable?

1. C2FO

• Overview: C2FO offers flexible early payment options with low fees and seamless ERP integration. Their Name Your Rate® technology allows users to set discount rates, providing customizable solutions.

• Funding Speed: Payments can be received as soon as the next day.

• Advance Rates: Typically between 80-100%.

• Technology: Robust platform with features like Invoice Central for easy management. This enables businesses to accelerate payments and manage cash flow efficiently without changing existing invoicing processes    .

2. Resolve

• Overview: Resolve focuses on net terms and cash advances, integrating with common ERP and accounting systems for automated invoice processing.

• Funding Speed: Often within days of invoice approval.

• Advance Rates: Up to 90%.

• Technology: Advanced integration and automation for seamless management. Resolve leverages the buyer’s creditworthiness to offer lower fees and ensures quick access to working capital, making it a reliable choice for improving cash flow    .

3. Settle

• Overview: Designed for AP automation and working capital solutions, Settle offers strong integration with accounting software and ERP systems.

• Funding Speed: Typically within one business day.

• Advance Rates: Up to 100%.

• Technology: Comprehensive automation for invoice capture and approval. Settle’s platform helps businesses streamline their financial operations, saving time and reducing manual errors  .

4. Lendica

• Overview: Lendica stands out with extensive connectivity, integrating with all public and private ERP and POS systems. Their AI-powered underwriting expands access to capital.

• Funding Speed: Instant funding decisions, typically within 24 to 48 hours.

• Advance Rates: Up to 100%.

• Technology: Advanced AI for smarter underwriting and streamlined processes. Lendica’s broad connectivity and rapid funding make it an exceptional choice for businesses seeking efficient and flexible AP financing solutions.

Category	C2FO	Resolve	Settle	Lendica
Fees	Typically low fees based on discount rates set by users. No upfront costs or hidden fees.	Fees vary; usually lower than traditional factoring, leveraging buyer’s credit rating.	Fees depend on services; competitive and transparent for AP automation and working capital solutions.	Rates start at 1% for 30 days.
Integration with ERP & POS Systems	Seamless integration with various ERP systems; no changes required to invoicing processes.	Integrates with common ERP and accounting systems, providing seamless invoice management.	Strong integration with accounting software and ERP systems to streamline AP processes.	Connects to all public and private ERP and POS systems, offering the widest connectivity in the market.
Loan Terms & Flexibility	Highly flexible; users can choose which invoices to accelerate and set discount rates.	Flexible terms based on buyer’s creditworthiness, ensuring favorable rates and terms.	Flexible working capital and AP solutions with customizable terms based on business needs.	Delay vendor payments up to 90 days with flexible payback schedules.
Funding Speed	Payments can be received as soon as the next day after terms are agreed upon.	Generally fast funding, often within days of invoice approval.	Rapid funding, often within one business day for qualified invoices.	Instant funding decisions, with quick access to funds, typically within 24 to 48 hours after approval.
Advance Rates	Typically between 80-100% depending on agreement with the buyer.	Up to 90% of the invoice value, depending on buyer’s credit rating and terms.	High advance rates, often up to 100%, subject to invoice and buyer terms.	Advance rates up to 100%, leveraging AI for smarter underwriting decisions.
Technology & Automation Features	Robust platform with features like Name Your Rate® and Invoice Central for easy invoice management and early payment requests.	Advanced technology for seamless integration and management of reverse factoring processes.	Comprehensive automation for AP processes, including invoice capture, approval rules, and integration with accounting systems.	Advanced AI-powered technology for underwriting and automated processes. Integrated with ERP and POS systems for streamlined loan and payment processes.
Eligibility Requirements	Accessible to small and mid-sized businesses; eligibility depends on buyer’s participation in C2FO program.	Based on buyer’s creditworthiness; favorable for suppliers with reliable buyers.	Suitable for startups and growing businesses; flexible criteria based on business needs and customer profiles.	Tailored to small and medium-sized businesses with specific requirements based on industry and business model. Expands reach beyond typical lenders using AI.

Why ERP Integration Matters as an Embedded Lender Paying Vendors

Enhance Efficiency

ERP integration ensures that all financial transactions and data are synchronized seamlessly. This automation reduces manual entry errors, saves time, and enhances overall efficiency in managing accounts payable. By integrating with ERP systems, embedded lenders like Settle and Lendica enable businesses to manage their invoices and payments within the same platform they use for other financial operations.

Improve Cash Flow Management

Real-time visibility into payable and receivable accounts is crucial for effective cash flow management. Embedded lenders that integrate with ERP systems provide businesses with up-to-date information on their financial status, helping them make informed decisions and maintain a healthy cash flow.

Simplify Operations

Integration with ERP systems streamlines financial operations, reducing administrative burdens and freeing up resources for other critical business activities. This simplification is particularly beneficial for small and medium-sized businesses that may lack the resources to manage complex financial processes manually.

For instance, Lendica’s ability to connect with all public and private ERP and POS systems ensures seamless transactions and data synchronization, making it easier for businesses to manage their AP processes effectively.

How to Save Money with Embedded Lenders for A/P

Lower Fees

Choosing the right embedded lender can lead to significant cost savings through lower fees. Lenders like Resolve and Lendica offer competitive rates by leveraging the buyer’s credit rating, which can reduce the overall cost of financing. These lower fees make it more affordable for businesses to access the capital they need to maintain operations and growth.

Automation

Automation features provided by embedded lenders save time and reduce the need for manual intervention in AP processes. For example, Settle’s comprehensive automation capabilities help businesses capture invoices, manage approvals, and process payments more efficiently, reducing the time and labor costs associated with these tasks.

Instant Decisions

Lendica’s AI-powered platform provides instant funding decisions, reducing the wait time and administrative overhead associated with traditional financing methods. This rapid decision-making process allows businesses to access funds quickly, improving their cash flow and operational efficiency.

By utilizing these cost-saving features, businesses can manage their AP financing more effectively, reducing expenses and improving overall financial health.

Lendica’s AI-powered platform provides instant funding decisions… allowing businesses to access funds quickly, improving their cash flow and operational efficieny.

Lendica Lens underwriting guide

The Importance of Eligibility Requirements When Seeking an A/P Facility

Broader Access to Capital

Eligibility requirements play a crucial role in accessing AP financing. Lendica’s AI-driven underwriting expands access to capital by evaluating a broader range of data points, making financing available to more businesses, including those that might not qualify under traditional criteria. This inclusivity is particularly beneficial for small and medium-sized businesses seeking to improve their cash flow.

Flexible Criteria

Settle and Lendica offer flexible criteria tailored to business needs, ensuring that startups and growing businesses can access the funds they need. These lenders consider various factors beyond traditional credit scores, allowing more businesses to qualify for financing and maintain healthy cash flow.

By understanding and meeting these eligibility requirements, businesses can secure the AP financing they need to support growth and stability.

Conclusion: Lendica Outperforms Top Rated Embedded Lenders in Accounts Payable Financing

Lendica stands out among top embedded lenders for accounts payable financing due to its unique features:

• Extensive Connectivity: Integration with all public and private ERP and POS systems ensures seamless transaction handling and data synchronization.

• AI-Powered Decisions: Smarter underwriting decisions expand access to capital, making financing available to a broader range of businesses.

• Instant Funding: Quick access to funds with instant decisions and high advance rates up to 100%.

By leveraging advanced technology and providing broad connectivity, Lendica offers unparalleled benefits, making it the superior choice for businesses seeking efficient and flexible AP financing solutions.