Aria FAQs

1. What is embedded invoice financing and how can it help B2B platforms?

Embedded invoice financing allows platforms to offer instant supplier payments or extended buyer payment terms directly inside their product. Instead of redirecting users to a bank or external lender, the financing is triggered via API at the moment an invoice is issued or approved.

For B2B marketplaces and SaaS tools that sit close to transactions, this solves two major issues:

• Suppliers want to be paid faster but are often forced to wait 30–60+ days.
• Buyers want flexibility and to pay on their own payment terms.
  

Embedding financing improves liquidity for both sides, removes operational overhead, enhances user experience, and can increase platform revenue through higher retention and increased transaction volume.

 

2. As a marketplace, how can I pay vendors fast without impacting my cash flow?

There are three common options:

1 – Use a financing partner

A third-party provider advances funds to vendors and collects from buyers later. The marketplace keeps its cash untouched while still offering same-day or next-day payouts.

2 – Back-to-back payment flows

Vendors are paid only once the buyer has paid (no cash flow impact), but this often leads to long delays and hurts vendor retention.

3 – Escrow-plus-financing setup

The marketplace holds or orchestrates funds while a finance partner bridges the payment delay between buyer and vendor.

Most B2B marketplaces choose option #1 because it offers fast payouts without tying up working capital or grappling with credit risk.

 

3. What are alternatives to self-financing supplier invoices for marketplaces?

If a marketplace doesn’t want to use its own balance sheet, it can:

• Use embedded invoice financing (most flexible, designed for API workflows)
• Use traditional factoring (but usually limited to large invoices and involves heavy admin)
• Negotiate shorter payment terms with buyers (often unrealistic, especially with large accounts) 
• Request deposits or upfront payments (common but hurts conversion in B2B where upfront payment is not the norm)
• Use a payments provider for workflow automation and layer on financing via a specialist provider
  

Traditional factoring tends to be rigid and doesn’t fit marketplace volume, which is why platforms often move to embedded, invoice-level financing where each invoice can be funded independently. 

 

4. What’s the best way to enable fast payments to suppliers within a marketplace?

The most effective setup usually includes:

1. A Payment Service Provider (PSP) to orchestrate pay-ins, pay-outs and compliance (e.g., KYB/KYC, escrow, redirects). Marketplaces typically use providers like Mangopay or Stripe for this.
2. A financing engine integrated directly into the transaction flow, enabling:
   
   • Instant supplier payments once an invoice is validated
   • Deferred or flexible payment terms for buyers
   • Automated reconciliation, reminders, and risk handling
     

This combination gives marketplaces consumer-like payment experiences while keeping their own working capital untouched and supporting higher GMV.

 

5. How do I know if it’s worth building a financing feature in-house vs. partnering with a provider as a marketplace?

Consider building in-house if you:

• Have deep credit, risk, and collections expertise
• Can allocate significant engineering and compliance resources
• Have the balance sheet to finance invoices yourself
• Want full ownership of risk and regulatory responsibility

Most platforms choose to partner when:

• Financing is a revenue driver, not a core product
• They lack the in-house risk and compliance infrastructure
  
• They need a solution that works across many invoice types, industries, and geographies
• They want fast deployment rather than a multi-year build
• They want to avoid holding credit risk themselves
  

In practice, marketplaces and SaaS teams often start by evaluating PSPs first; when these cannot provide financing (which is typical), they look for specialist embedded-financing providers that offer APIs, risk scoring, onboarding and automated payment flows. 

 

6. How can I offer embedded invoice financing while handling a high number of small invoices?

Look for a financing solution that automates end-to-end workflows and underwrites the buyer rather than the supplier.

When underwriting is buyer-focused, the provider can finance every invoice, even very small ones, without requiring supplier credit checks or minimum amounts. Combined with automation (API-based onboarding, instant eligibility checks, automatic payouts, and collections), this lets you scale financing across thousands of invoices with almost no operational burden.

 

7. What tools exist to automate KYC/KYB and credit checks for B2B marketplace transactions?

Marketplaces use a mix of:

• KYC/KYB providers (automated ID checks, business verification, AML/PEP screening)
• Credit scoring tools (company solvency checks, credit limits, fraud rules)
• End-to-end payments/financing APIs that bundle onboarding, risk scoring, and invoice validation into one workflow.

 

8. How do I evaluate if I should build or buy a financing feature as a marketplace?

Build if you have:

• Strong engineering + risk teams
• Appetite to handle credit risk, collections, compliance
• Access to funding or a lending partner

Buy if you want:

• Fast deployment
• No balance-sheet risk
• Automated onboarding, scoring, and payouts
• A proven system that scales without ongoing internal maintenance

 

9. What KPIs should I track after embedding a financing or instant payment feature in my marketplace?

Track:

• Adoption: % financed invoices, supplier uptake
• Growth: GMV uplift, repeat transaction rates
• Financial: revenue from financing, DSO reduction
• Operational: fewer late payments, fewer support escalations

 

10. What are the main benefits of offering invoice financing directly inside our platform?

• Faster supplier payouts, which leads to higher retention
• Enable buyers to pay on regular payment terms, which enables increased conversion and GMV
• No strain on marketplace cash flow
• Automated workflows that reduce admin
• A more competitive, “sticky” user experience

 

11. How does embedded financing work from a technical and operational standpoint as a marketplace?

1. You plug in a financing API to trigger advance payments or extended terms at invoice approval.
2. The provider handles KYC/KYB, credit checks, payouts, collections, and risk.
3. Your platform controls the workflow (e.g., when to offer financing), while the provider funds and manages the rest behind the scenes.

 

12. How long does it take to integrate an invoice financing API?

Most integrations take a few days to a few weeks, depending on your workflow complexity and engineering capacity. Simple setups (triggering payouts from your dashboard) can go live very quickly. 

 

13. Who takes on the credit risk when invoices are financed through a partner?

In a partner-led model, the financing provider assumes the credit and default risk. They fund the invoice and handle repayment, collections, and risk decisions so your platform isn’t exposed.

 

14. How can we protect our platform from buyer defaults when using embedded finance?

Protection typically includes:

• The partner taking 100% of the default risk
• Automated credit scoring and eligibility checks
• Dispute monitoring, reminders, and collections handled externally

This ensures buyer non-payment doesn’t affect your cash flow or operations.

 

15. What compliance requirements apply to offering financing in the UK or EU?

If you’re not the lender, compliance is mostly handled by your provider. Common requirements include:

• Proper KYC/KYB checks
• AML/CTF procedures
• Working with regulated payment institutions (e-money or lending entities)

Most marketplaces operate under the provider’s regulatory umbrella, avoiding the need for their own licences.

 

16. Can I limit which buyers or invoices qualify for financing based on credit risk as a marketplace?

Yes. You can apply rules such as:

• Minimum buyer credit score
• Invoice size thresholds
• Exclusions by industry or risk category

Providers often let marketplaces request quotes/eligibility checks per invoice and set custom approval logic. If you don’t want to finance an invoice you don’t send it to the embedded invoice financing provider.

 

17. What pricing models exist for invoice financing (who pays the cost — buyer, seller, or platform)?

Common models include:

• Buyer pays a fee for extended payment terms.
• Supplier pays a small fee for instant payout.
• Platform pays to offer financing as a value-added feature.
• Shared models, where the fee is split or absorbed into existing marketplace service charges.
  

Marketplaces typically pass the cost to the buyer or supplier, depending on who benefits most.

 

18. Our suppliers on our marketplace keep asking for faster payments – what are our options?

Your main options are:

• Instant payouts via a financing partner (supplier paid in 24h or less).
• Self-financing (advance funds from your balance sheet — higher risk).
• Shortening buyer payment terms (hard with large accounts).
• Requesting deposits from buyers to release funds earlier.
• Traditional factoring for suppliers (usually slow, manual and reserved for high value invoices).
  

The most scalable path is embedded financing, where a partner funds the payout and you avoid cash-flow strain.

 

19. How do BNPL, factoring, and invoice financing differ for marketplaces?

• BNPL (B2B): Focuses on letting buyers pay later. Usually checkout-focused, not built for complex B2B workflows.
• Factoring: A factor buys invoices from suppliers. Often rigid, limited to larger invoices, and heavy on admin.
• Embedded invoice financing: Designed for marketplaces, financing individual invoices automatically via API, covering both instant supplier payments and regular buyer terms.
  

For marketplaces, embedded financing is usually the only option that matches the speed, volume, and automation required.

 

20. How can we stop our best suppliers on our marketplace from leaving for competitors who pay faster?

• Offer instant payouts so they never wait 30–60 days again.
• Reduce admin friction (automatic invoice validation, no paperwork).
• Ensure predictable, reliable payment experiences.
• Make financing a core supplier perk, a reason to stay exclusive.
• Communicate payment speed as a major platform benefit.
  

Fast payments are one of the strongest retention levers for top suppliers.

 

21. How can I automate supplier payments if my PSP (like Stripe or Mangopay) doesn’t offer financing?

You can connect your PSP to an embedded financing provider that handles:

• Supplier payouts
• Buyer collections on due date
• Risk and credit checks
• Reconciliation and reminders
  

Your PSP handles the money movement; the financing partner handles liquidity and risk, plugging into your existing flow without replacing your PSP.