The honest benchmark
There is no universal public “standard” revenue share for embedded lending. Economics are usually negotiated and depend on volume, eligibility, risk allocation, capital cost, merchant pricing, servicing scope, and whether the platform is simply referring leads or deeply embedding the product.
| Variable | Why it matters | What to ask |
|---|---|---|
| Platform revenue share | Headline rev share can hide fees, minimums, or risk obligations. | Is the share based on origination fee, interest/factor revenue, net revenue, or lifetime gross profit? |
| Credit risk | Loss-share or guarantees can turn revenue into downside exposure. | Does the provider/lender bear all credit risk, or does the platform guarantee/co-invest/loss-share? |
| Cost of capital | Provider funding durability shapes merchant pricing and long-term availability. | Who funds originations? What warehouse/forward-flow partners support the program? |
| Merchant pricing | Cheap offers convert better; expensive offers can hurt trust. | What APR/factor-rate range or total repayment cost will merchants see by risk band? |
| Eligibility rate | Revenue depends on how many merchants receive compelling offers. | Run a sample underwriting pass on our merchant data before contract signing. |
| Support/servicing | Complaints land on the platform even if the provider services the product. | Who handles disputes, repayment issues, renewals, complaints, and collections? |
Model the economics this way
- •Eligible merchant count × expected take rate = funded merchant count.
- •Funded merchant count × average advance/loan size = origination volume.
- •Origination volume × provider gross yield/fee = revenue pool.
- •Revenue pool × platform share = platform gross revenue.
- •Subtract implementation, support, compliance, data, and any risk-sharing costs.
Red flags
High rev share + platform risk
A better headline split may be worse if you absorb loss-share, guarantees, or operational burden.
No sample underwriting
Without real eligibility and offer-size data, revenue projections are mostly fiction.
Unclear funding durability
If capital markets tighten, a fragile provider can pause originations and damage the merchant experience.
No support model
Merchants will blame your platform even when the provider owns the product.