Bridging the Small Business Finance Gap: How Liberis Is Unlocking Growth for Entrepreneurs

For small businesses, securing funding remains a persistent challenge. Traditional banks have steadily pulled back from lending to smaller enterprises, leaving a gap that fintech companies are now striving to fill. Liberis, a pioneer in embedded finance, is redefining access to capital by integrating funding solutions directly into the platforms small businesses already use—whether that’s eBay, Vagaro, or Stripe.

At Fintech Meetup, CEO Rob Straathof shared how the company is driving innovation, reshaping lending models, and positioning itself for expansion in the US market.

Liberis was founded to address a fundamental issue: banks find small business lending unprofitable. The high cost of servicing loans under $100,000 means that many businesses are either declined or given minimal credit lines that fail to match their growth potential.

“The key issue for small business owners is that their finances are too irregular and archaic for large banks to analyze efficiently,” said Rob. “For anything below $50,000 or $100,000, it’s just not profitable for banks to lend. So they either pre-approve tiny credit lines or reject applications outright—even when businesses have far greater potential.”

Liberis solves this problem by embedding finance directly into business platforms. Instead of forcing merchants to navigate complex applications, it assesses real-time data from platforms like eBay or Vagaro, enabling businesses to access pre-approved funding—sometimes up to $1 million—within minutes.

“If a small business needs to prepay inventory from overseas and won’t generate sales for eight weeks, we provide financing tailored to their cash flow,” Rob explained. “Our model adapts repayments dynamically, collecting as a percentage of their revenue. If they grow faster, they repay faster. If they have a slow period, repayments adjust automatically.”

This approach removes the friction, delays, and uncertainty that often discourage small businesses from seeking capital—while ensuring they receive funding precisely when needed.

Beyond traditional credit lines, Liberis is pushing the boundaries of alternative finance models. Recognizing that marketing spend is often a barrier for small businesses, the company introduced Buy Now, Pay Later (BNPL) for business marketing.

Traditional lenders often overlook the true capital needs of small businesses, especially in marketing. Rob Straathof noted that many entrepreneurs resort to personal credit cards for business expenses, a costly and inefficient approach.

“Many business owners max out their personal credit cards just to fund digital ads,” he explained. “A merchant might need $10,000 for a TikTok or Facebook campaign, and we know that spend could generate 10-12x return in revenue. Our BNPL model lets them finance that spend—potentially at a discount through partnerships—and repay only once the revenue starts coming in.”

This circular financing model benefits all stakeholders. Platforms see an increase in ad spending, while merchants gain access to capital without immediate cash-flow constraints. At the same time, Liberis strengthens its financial ecosystem by creating a self-sustaining credit model that ties capital availability to revenue generation.

Similarly, the company has launched FlexiPay, a revenue-based credit line that allows merchants to draw and repay funds seamlessly—operating more like an overdraft but without rigid bank constraints.

While Liberis has already established dominance in Europe, its US expansion has been fueled by a combination of economic shifts and technological adoption. Banks continue to pull back from small business lending, widening the gap for fintech lenders. At the same time, embedded finance has moved from niche to necessity, with platforms like eBay and Stripe integrating credit solutions directly into their ecosystems. Finally, small business creation has surged—jumping from 25 million in 2018 to 31 million today, a shift accelerated by post-pandemic entrepreneurship and e-commerce marketplaces.

The company has already doubled its US team, established East and West Coast offices, and is aggressively expanding to support partners across multiple jurisdictions.

With more tech-first companies moving into small business lending, many underestimate the complexities of underwriting. Liberis, however, brings 17 years of proprietary data, deep industry expertise, and a battle-tested approach to risk.

“We’ve seen waves of fintechs jump into small business lending—and many fail,” Rob said. “The biggest challenge is underwriting at scale. You need:
✅ Massive data pools to accurately predict risk.
✅ Deep funding partnerships—we’re backed by Barclays, HSBC, and BCI.
✅ AI-driven pricing models that adapt dynamically to business performance.”

Unlike competitors that launch generic lending products, Liberis works hand-in-hand with partners to tailor financing solutions that fit specific business needs, whether that’s marketing financing, inventory purchasing, or equipment funding.

As AI reshapes fintech, Liberis is actively integrating AI into underwriting—but with a clear focus on automation, not just hype.

While much of the AI discourse in fintech centers on customer service automation, the real transformation lies in underwriting itself. Rob Straathof sees AI-powered lending models as the true game-changer. “Everyone is talking about AI for customer service or chatbots,” he said. “But the real disruption will be in agentic AI underwriting.” We’ll see fully autonomous underwriting bots that interface with Stripe, eBay, or Shopify in real time, offering pre-approved funding instantaneously.”

Liberis is already experimenting with Gen AI models that analyze business risk faster than human underwriters—training them on open data sources and proprietary lending records.

“In the next five years, lending decisions will be made autonomously, dispersed instantly, and repaid dynamically based on business performance. That’s where we’re heading.”

With small businesses driving 70% of employment but receiving just 20% of financing, the need for agile, embedded financial solutions has never been greater. As macroeconomic conditions shift, Liberis remains committed to supporting small businesses through economic cycles, ensuring that funding remains available when it’s needed most.

The next phase of fintech will not be defined by who lends the most, but who integrates capital most effectively. For Liberis, the vision is clear: seamless, embedded lending that aligns directly with business operations.