Embedded Lending as a Growth Driver – For Your Platform and Its Business Customers

"We want to make sustainable fashion accessible – and to do that, we need to act fast."
– Moritz Marker, CEO of LOVECO

LOVECO is one of Germany’s leading brands for fair and sustainable fashion. Founded in 2014, the company now operates multiple stores and a successful online shop. But those who think sustainable fashion is a relaxed niche business are mistaken. The fashion industry is fast-paced, competitive – and heavily dependent on pre-financing.

“We have to order and pay for inventory before it even reaches our stores – and months before it starts selling,” says Moritz Marker. “If we want to expand our product range, we have to invest today to deliver six months from now.”

This doesn’t just apply to quantities, but also to introducing new materials, brand collaborations, and staying on top of trends. Last year, LOVECO had the opportunity to launch a new line made from recycled wool – a material that perfectly fits the company’s values and was already in high demand. But, as is often the case: the opportunity was there, the budget was not.

Finding the Right Financing

For companies like LOVECO, the ability to move quickly on new market opportunities is crucial – whether it’s securing limited-edition materials or jumping on favorable supplier deals. But these moments always raise the same question: How do we finance this?

In the past, LOVECO would first reach out to their bank – a logical and trusted step. Traditional banks are reliable partners with long-standing experience and deep industry knowledge. But when it comes to short-term financing needs – such as bridging production and payment cycles or pre-financing seasonal stock – many business models reach their limits. Not because banks lack expertise, but because internal processes, collateral requirements, and regulatory frameworks often lead to slower turnaround times.

To stay agile, LOVECO decided to complement its banking relationship with a digital financing solution from Banxware. The big advantage? Speed, flexibility, and full digital integration.

Within just a few days, the financing was approved and disbursed – no manual paperwork, no physical signatures, and no lengthy delays. This speed made all the difference: the company was able to purchase the new collection on time and take advantage of early payment discounts – a clear financial benefit.

The new recycled wool collection quickly became one of LOVECO’s top-selling product lines. A perfect example of how essential it is to have the right financing available at the right time.

What Platforms Can Learn From This

LOVECO’s story is far from unique – it highlights the everyday challenges faced by countless small and medium-sized businesses. Growth often follows a familiar path: invest first, deliver next, and only then start earning. Companies that want to expand into new product categories or markets need financial breathing room. But that flexibility is often missing – especially when traditional financing can’t keep up with the pace of modern business.

This is exactly where platforms come into play. Any platform that serves B2B customers – whether in ecommerce, logistics, wholesale, or SaaS – can become a true growth partner by offering integrated financing directly within its ecosystem.

Embedded Lending: A Scalable Lever for Platform Growth

Embedded lending enables platforms to offer financing where and when it’s needed – fast, digital, and seamlessly integrated. The benefits are clear:

→ Stronger customer loyalty: Businesses that finance through your platform are more likely to stay.
→ Accelerated partner growth: When your customers grow, your platform grows with them.
→ Clear differentiation: Offering financing makes your platform a true all-in-one solution.

With Banxware, platforms can integrate two fully digital financing products: Sofortfinanzierung (€1,000 to €250,000) and HVB FlexFinanzierung (€250,000 to €5,000,000.

Both solutions are designed specifically for fast-growing SMEs – and can be tailored to meet different business needs.

“One of our key learnings over the years: speed is everything. If we can react quickly, we have the chance to lead. Banxware gave us that speed.”
– Moritz Marker, CEO of LOVECO

Conclusion

Whether it’s recycled wool in Berlin, new product lines in B2B commerce, or SaaS subscriptions – growth needs financing. And platforms that understand this and provide smart, integrated solutions not only improve the customer experience, but position themselves as essential partners in their customers’ success.

Want to unlock growth potential on your platform and support your customers as they scale?

‍Book a meeting with our experts and learn more about Banxware’s embedded lending solution.

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