Flute Innovates Small Business Financing with Embedded Solutions in Payments Platform

Flute Transforms Small Business Financing

In a landscape where over half of small business owners rely on personal savings or credit cards to fund critical business expenses, Flute is spearheading a shift in the access to capital narrative. By forging an innovative partnership with Jaris, an embedded finance platform, Flute is rolling out two groundbreaking financial products aimed at small businesses, allowing them to tap into the financial resources they need without the added burden of paperwork or reliance on their personal finances.

Bridging the Gap Between Merchants and Capital

Recent statistics reveal a significant gap between small business owners and their access to necessary funds. According to Flute's Consumer and Merchant Surveys conducted over the past year, about 39.5% of small businesses reported requiring additional cash to address business-related expenses or to seize growth opportunities. Alarmingly, only 6.7% of these business owners reached out to their payment processor for support. Instead, approximately 54.3% of them opted to draw on personal savings or credit cards, with an additional 14.3% admitting they had no reliable funding sources available.

This scenario, especially for owner-operated businesses where personal and business finances often intertwine, poses a considerable risk. Financing growth through personal funds can lead to heightened vulnerability should the business face challenges. Recognizing this dilemma, Flute aims to provide a safer path for these entrepreneurs.

Introducing Working Capital and Instant Payouts

The partnership with Jaris enables Flute to introduce two vital financial solutions: working capital and instant payouts. Both services are seamlessly integrated into the existing Flute platform, allowing small business owners to apply for financial assistance directly from the dashboard where they already manage transactions, deposits, and reporting.

1. Working Capital: This feature offers small business owners a streamlined process to apply for loans based on their transaction history, showcasing their financial activity. With funding decisions backed by banks through Jaris—who brings over $1 billion in capital—we can provide merchants with the necessary financial boost without the typical hurdles associated with loan applications.
2. Instant Payouts: Gone are the days of waiting for funds from a standard deposit cycle. With this solution, owners can access a portion of their day’s sales immediately, even on weekends and holidays. This responds directly to the urgent cash flow needs many entrepreneurs face.

Redefining Financial Engagement for Merchants

CEO of Flute, Derek Dean, articulates the company's vision: "Every payment that a merchant processes provides valuable information about their business. By harnessing this data, embedded finance transforms these insights into practical tools. Business loans or speedy cash inflows are now possible without the cumbersome aspects of traditional banking."

In parallel, Chris Aristides, CEO of Jaris, emphasizes the strategic importance of their collaboration. "Flute has created a highly functional payments ecosystem tailored to meet the needs of modern businesses. Together, we enable merchants to access essential banking services right where they manage their financial affairs, minimizing disruptions to their operations."

This collaboration enhances the Flute payments platform, unifying payment processing, deposits, reporting, and merchant services in one user-friendly account. With partnerships across independent retail, personal services, professional services, and hospitality sectors, Flute is making waves in the small business finance arena.

Conclusion: A Step Forward for Small Businesses

For small business owners who are tired of juggling personal finances with business needs, Flute’s new offerings present a fresh and promising alternative. By leveraging existing transaction data, Flute and Jaris are not only addressing the funding gap but also enabling small business owners to focus on growth instead of surviving financial uncertainties. To learn more about Flute and its innovative solutions, visit flute.com. Conversely, businesses interested in creating tailored financial products with Jaris can explore opportunities at jaris.com. This is a significant change that has the potential to empower small businesses across the industry.