The Rise of Embedded Finance in the Equipment Sector

In today's evolving economic landscape, equipment distributors face a major challenge: the need to modernize their financial services to meet growing expectations from their business customers. Embedded finance is emerging as a revolutionary solution, allowing financial services to be directly integrated into existing purchasing journeys. According to latest market data, the embedded finance sector is expected to grow by 33% annually through 2025, demonstrating the crucial importance of this transformation for B2B players.

New Expectations from Equipment Distributors

The Need for Digital Transformation in B2B Financing

The equipment leasing industry is undergoing a profound transformation. According to a recent Wolters Kluwer study, companies are now favoring more flexible financing structures, such as pay-per-use models and Equipment-as-a-Service (EaaS) offerings. This evolution responds to a growing need for agile financing solutions that can quickly adapt to market fluctuations.

The Importance of Customer Experience in the Financing Process

Equipment distributors can no longer rely on traditional financing solutions. As demonstrated by the success of Solfiz, which implemented the Basikon platform for its distributor partners, the focus is now on creating a smooth and intuitive user experience. Business customers now expect financing processes to be as simple and fast as those they experience in their personal lives.

Speed and Flexibility Challenges for Distributors

Execution speed has become a major differentiating factor. Embedded finance solutions significantly reduce approval times from several weeks to just hours or even minutes. This transformation is made possible through low-code platforms like Basikon Core Lending, which automate the entire financing process while ensuring great flexibility in offer configuration.

The Low-Code Revolution in Equipment Leasing

Automation of Approval Processes and Contract Management

The adoption of low-code solutions is radically transforming how distributors manage their financing offers. According to an analysis by LionTech Finance, integrating financial services via low-code platforms not only accelerates approval processes but also improves risk assessment accuracy through real-time data analysis.

Seamless Integration with Existing Systems

The strength of low-code solutions lies in their ability to easily integrate with existing systems. Basikon's Core Banking solution perfectly illustrates this approach by allowing distributors to connect their ERP systems and e-commerce platforms directly to their financing services, creating a coherent and high-performing digital ecosystem.

Customization of Financing Offers Based on Needs

Low-code platforms offer unprecedented flexibility in creating and adapting financing offers. Distributors can now design customized leasing solutions that precisely meet the specific needs of their different customer segments while maintaining a fast and efficient approval process.

Concrete Benefits for Distributors

Accelerating the Sales Cycle through Integrated Financing

Integrating financing solutions directly into the purchasing journey represents a major competitive advantage for equipment distributors. As demonstrated by Basikon customers' experience, implementing an embedded finance solution significantly reduces financing request processing time. This process optimization leads to a notable increase in conversion rates and a reduction in cart abandonment.

Diversification of Revenue Streams

Beyond sales acceleration, distributors can now generate new revenue through financial services. Modern financing platforms enable offering a wide range of services: traditional leasing, lease-to-own options, installment payment solutions, and complementary insurance services. This diversification helps increase average transaction value while creating recurring revenue streams.

Strengthening Long-term Customer Relationships

Adopting an embedded finance solution transforms customer relationships. By offering flexible and personalized financing solutions, distributors position themselves as true strategic partners for their clients. Data collected through the platform also enables better understanding of customer needs and anticipation of future financing requests.

Keys to Successful Implementation

Choosing the Right Technology Platform

Selecting the right platform is crucial for the success of your embedded finance strategy. Low-code solutions like Basikon Core Lending offer an optimal balance between deployment speed and customization. The platform must not only meet your current needs but also be able to evolve with your business, particularly in terms of scalability and integration of new features.

The Importance of an Experienced Partner in B2B Financing

Industry expertise is a key success factor. A partner like Basikon, with its extensive experience in B2B equipment financing, can guide you in defining your financing strategy and optimizing your processes. This expertise helps avoid common pitfalls and accelerates the return on investment of your embedded finance solution.

Best Practices for a Smooth Transition

The digital transformation of financing must be conducted progressively and in a structured manner. It's recommended to start with a pilot project on a specific customer segment or product line before deploying the solution on a larger scale. This approach allows for process validation, team training, and solution refinement based on field feedback.

Conclusion: Preparing for the Future of Equipment Financing

Embedded finance, powered by low-code solutions, represents a major opportunity for equipment distributors to differentiate themselves in their market. In 2025, the ability to offer digital and flexible financing solutions is no longer a luxury but a necessity to meet B2B customer expectations. Distributors who leverage these new technologies to transform their financing offering will be best positioned to capture future growth opportunities.

FAQ

What is embedded finance?

Embedded finance refers to the integration of financial services (financing, payment, insurance) directly into the customer's purchasing journey. This approach allows offering financing solutions at the moment when the customer needs them, without disrupting their buying experience.

What are the advantages of low-code for equipment leasing?

Low-code platforms enable rapid deployment of customized financing solutions without requiring complex development. They offer great flexibility in offer configuration while ensuring simple integration with existing systems.

How to choose the right embedded finance platform?

Key criteria include ease of integration with your existing systems, configuration flexibility, solution robustness in terms of security and compliance, and the provider's expertise in B2B financing.

What is the average implementation time for an embedded finance solution?

With a modern low-code platform, initial deployment can be completed in 3 to 4 months. This timeframe may vary depending on your needs' complexity and the desired level of integration with your existing systems.

What types of equipment can be financed through an embedded finance solution?

All types of professional equipment can be financed: industrial machinery, construction equipment, IT hardware, commercial vehicles, medical equipment, etc. The platform can be configured to manage different types of assets with their specific characteristics.

Ready to transform your equipment distribution business with embedded finance? Discover how Basikon's low-code platform can help you digitize your financing offers. Request a personalized demo and start your digital transformation today.