This year is proving to be pivotal in the development of digital point-of-sale solutions for equipment finance. Demand is accelerating as manufacturers, dealers, end-users, and equipment finance providers discover the advantages of “embedded finance.”

While the equipment finance industry is still in the early stages of adopting embedded solutions, there was a notable surge in activity in 2025. EverBank’s vendor equipment finance business, for example,  experienced a 56% jump in digital applications for financing. Year-to-date trends in 2026 are showing an even higher percentage increase, with usage expanding rapidly.

It’s going to be difficult for equipment vendors and their finance providers to operate in the future without offering strong embedded finance solutions. This is especially true for small- and mid-ticket transactions that are a natural fit for retail business  models.

The question is: are you ready? 

It’s important to understand the trends driving embedded equipment finance — and to answer critical questions before launching e-solutions or taking existing programs to the next level. Thoughtful planning will help your organization:

• Clarify which equipment transactions to target;
• Determine the technology strategy, user experience, automation, integration, compliance, and human resources required to do the job; and 
• Preserve and strengthen customer relationships.

Market Drivers

Embedded finance refers to financing options integrated into digital systems at the point-of-sale. In some cases, the equipment vendor incorporates a financing provider’s digital proposal and credit application into their website, allowing customers ordering equipment to choose and apply for financing as a payment option. In other cases, the vendor integrates a finance provider’s proposal into their proprietary equipment quoting system. The system automatically generates a finance quote with every proposal, and interested customers can submit their credit applications online. 

While the B2B world of commercial lending has lagged consumer lending in adopting embedded finance, demand is rising. Embedded options will become increasingly popular as younger, digital-first generations continue to enter the workforce. 

Consider the benefits for manufacturers, dealers, and their customers. A robust embedded finance system can complete an impressive range of tasks in a single business day: everything from generating a finance quote, receiving the customer’s finance application, approving it, and obtaining the customer’s signature, to issuing the purchase order for the vendor, securing the vendor invoice, and processing payment to the vendor.

As a result, equipment vendors with embedded financing options can increase sales, close sales more quickly, and receive faster payments. Case in point: EverBank data shows vendor partners with embedded financing through EverBank are paid 25-30 days faster than by any other payment method they accept. This in turn, reduces days sales outstanding and collection costs. 

Equipment finance providers benefit, as well. Many vendor sales representatives are excellent at building customer relationships and explaining the technical aspects of their equipment, but are uncomfortable discussing financing. Embedded finance overcomes this challenge and boosts originations by incorporating financing options into every customer proposal. The systems also enable finance providers to improve operational efficiency without adding headcount. Faced with thinning spreads, equipment finance teams can use embedded finance to automate lower-value tasks for specific transactions —focusing more of their time and talents on higher-value customer support, complex deals, and required customizations.

Market volatility is another factor driving interest in embedded finance systems, albeit to a much lesser extent. Embedded solutions can be competitive differentiators for vendors and finance providers, making it easier for companies to transact business with one another in challenging environments. 

Critical Questions

The case for embedded finance is compelling. Still, success is not guaranteed without proper planning, support, and capabilities. Vendor and captive equipment finance providers should make sure they have answered questions critical to their business before initiating or expanding embedded finance programs. This analysis should cover the following:

• Transactions to target: Which equipment transactions lend themselves to embedded finance?
• Technology strategy: Should you build a proprietary solution or partner with third-party providers?
• User experience and automation: How can you design a platform that is highly automated, intuitive, and appealing to both vendors and customers?
• Integration and compliance: Does the solution align with your underwriting process, regulatory requirements, and broader business infrastructure?
• Ongoing program management: What resources are needed to manage, maintain, and continuously improve the solution?
• Customer relationships: How can you offer a seamless digital experience without sacrificing the personal touch that strengthens relationships with equipment vendors and their customers? 

While answers to these questions will vary for each finance provider, here are a few perspectives to consider based on EverBank’s experience in embedded finance.

Large-ticket transactions and more complex deals involving financing for large companies or multiple assets tend to require structuring, customization, and negotiation. However, small-ticket transactions and some mid-ticket transactions for individual assets can be a natural fit for embedded finance programs. This is especially true for equipment already sold online to small-business end users via e-commerce retail models. 

Organizations developing embedded finance programs also must decide whether to build the capabilities in-house or partner with third-party technology providers. While in-house solutions have their merits, especially for customizations, it is usually more cost-effective and efficient for finance companies to incorporate third-party technology. Third-party solutions are continuing to improve in the industry. What’s more, technology is not the core focus of finance businesses, even if providers happen to have terrific technology teams. So, consider third-party technology solutions and, if you opt for them, lean into those that work best for your business model and key vendors.

Your objective here is to offer an embedded finance solution that is highly automated, intuitive, and appealing. Ensuring this requires carefully evaluating the needs of vendors and end users, then deploying capabilities that ease and speed processing through auto-document generation, auto-scoring, accelerated funding, and other features. 

Finding the right embedded finance solution for your business is also a bit of a balancing act. The platform must be standardized enough to roll out across multiple vendor programs, yet offer some room for customization. It must be flexible enough to evolve with a vendor’s changing sales processes and  also give users an “off ramp” from the technology when they need direct customer support.
Protecting relationships

Vendor equipment finance and captive finance organizations are only as strong as the people who power them. Remember that technology is a tool, and your team’s knowledge, experience, and customer relationships are still the engine fueling business. 

Embedded finance initiatives must not lose sight of this. When launching or expanding embedded finance programs, prioritize these goals:

• Provide financing options proactively for equipment at the digital point-of-sale; 
• Streamline originations and funding for small- and mid-ticket transactions; 
• Reduce lower-value tasks from workloads so your team has more time to help customers with asset finance strategy and structured transactions.