Context
Access to financing remains a key challenge for small and medium-sized businesses. Despite numerous support programs, most entrepreneurs face a lack of working capital, complex banking procedures, and collateral requirements. At the same time, business models are changing: purchases, sales, and even supply are happening online. This is where embedded finance comes into play — a new paradigm where financing is integrated into the business process itself.
The Problem with the Traditional Model
The banking system is accustomed to working with medium and large borrowers.
For micro clients (annual revenue up to 10 million UAH), especially in agriculture, trade, or HoReCa, credit often remains inaccessible due to lack of collateral or non-standard risk profile.
As a result, businesses either limit their growth or finance operations through expensive consumer loans.
New Approach — Financing at the Moment
Embedded finance changes the very logic of financing:
• a farmer receives goods with deferred payment through a digital platform,
• a restaurant replenishes inventory through a marketplace and automatically receives short-term credit,
• a distributor sells with installments, while the financial risk is taken by a fintech partner.
This is how solutions developed by fintech company Activitis through WEAGRO (agricultural sector) and eDilo (trade, HoReCa) work.
Financing becomes part of the transaction, not a separate banking procedure.
Market Benefits
• Speed — decisions are made in minutes, not weeks.
• Simplicity — without collateral, currency risks, and paper bureaucracy.
• Partnership — all parties win: the supplier increases sales, the client receives working capital, the financier gets a liquid portfolio.
• Data instead of collateral — scoring is based on data from numerous registries, behavioral analytics, and credit history.
The Future of Micro and Small Business Financing
In Ukraine, embedded finance has special potential.
The combination of digital platforms and embedded financing can create a true ecosystem of accessible solutions.
Small businesses will receive what they have lacked for years — additional working capital exactly when they need it.
Conclusion
The financing of the future is not a product you need to search for or go somewhere to get.
It is a service integrated into every business process.
And it is precisely embedded finance that opens the path to a new financial culture — fast, partnership-based, transparent.
