“Embedded finance” refers to financial services that are offered by non-banks or not directly by banks. The best-known example is probably car leasing. Recently, there have also been more of  such financing solutions for heat pumps, photovoltaic systems and other products.

In principle, every industry and every company can introduce such financing options for its own products.

In our opinion, embedded finance is a good option for all companies that already have a well-functioning, relatively high-priced product with a strong distribution network, e.g. heat pumps, photovoltaic systems or costly B2B manufacturing equipment. In such a scenario, a financing option offered directly by the manufacturer can save cumbersome applications to banks or authorities and is tailored precisely to the product in question.

Anyone who wants to grant loans must be licensed by BaFin in Germany. This involves high regulatory hurdles. And that's a good thing. After all, the risks should be under control and there should be no usury. However, there are legal and tailor-made solutions that enable companies to offer very specific financing options for their products - without becoming a bank themselves.

As lawyers with decades of experience in the finance and fintech sector, we are proven experts in setting up customer-friendly financing products. Our strength lies in dealing with and solving complicated supervisory and regulatory issues in a client- and future-oriented manner. Our embedded finance solutions meet the highest legal requirements without any hidden risks for your core business. At the same time, they offer your customers a straightforward and enjoyable buying experience. This makes you a one-stop store for key points of your customers' journey.