This week, I sat down to talk with Prashant Fuloria, CEO at Fundbox, and Anchit Singh, Fundbox's Chief Business Officer.

Fundbox has been a pioneer in embedded finance for SMBs since they were established in 2013, and I originally met the team back in 2014 when I was at Funding Circle. They've partnered with platforms like QuickBooks and FreshBooks to provide fast access to over $5 billion in capital to 125,000 small businesses.

Prashant and Anchit talked to me about the evolution of embedded finance, emphasizing the importance of data integration and innovative underwriting methods, such as cash flow underwriting. A lot of Fundbox's success can be attributed to advanced credit models, continuous tech innovation, and a partner-obsessed approach. They also highlighted the potential for future partnerships with banks and other platforms to enhance small business lending.

🎧 The future of small business lending, with Prashant Fuloria and Anchit Singh of Fundbox

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Some background...

Small business lending has long been underserved, fragmented, and difficult to scale. While fintechs have made major strides in digitizing access to capital, the reality is that SMB lending is still in its early stages. Prashant and Anchit break down some of the key points discussing why embedded finance is the future of small business lending, the barriers that remain, and what platforms need to do to build a more efficient and accessible ecosystem for SMBs. 

Fundbox is the pioneer of embedded working capital solutions for SMBs, leading the charge in best-in-class embedded finance offerings since it was founded in 2013. Fundbox empowers the small business economy by offering fast, simple access to working capital through the digital tools businesses already use.

Give the episode a listen here:

🎧 The future of small business lending, with Prashant Fuloria and Anchit Singh of Fundbox by This Week in Fintech’s Podcast

TWIF host Nik Milanovic sat down with Prashant Fuloria, CEO, and Anchit Singh, CBO, of Fundbox, a pioneer in embedded finance for SMBs since 2013.Fundbox has partnered with platforms like QuickBooks and FreshBooks to provide fast access to over $5 billion in capital to 125,000 small businesses.Prashant, Anchit, and Nik discussed the evolution of embedded finance, emphasizing the importance of data integration and innovative underwriting methods, such as cash flow underwriting.They also highlight the potential for future partnerships with banks and other platforms to enhance small business lending.[This is a sponsored episode]

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🎧 The future of small business lending, with Prashant Fuloria and Anchit Singh of Fundbox

Podcast Episode · This Week in Fintech’s Podcast · 03/04/2025 · 42m

Apple Podcasts

Outline

Introduction and Overview of Fundbox

• Nik Milanovic introduces the podcast episode and guests: Prashant Fuloria, CEO at Fundbox, and Anchit Singh, Chief Business Officer.
• Fundbox has been a pioneer in embedded finance solutions for small businesses since 2015.
• Fundbox has partnered with SMB-focused platforms to help 125,000 small businesses unlock growth with fast access to over $5 billion of capital.
• Fundbox has received accolades, including being named one of CNBC's top 250 Fintechs in 2024.

Prashant Fuloria's Background and Journey to Fundbox

• Prashant Fuloria shares his background, starting his career at Google as a product manager on the AdWords team.
• He moved to Facebook, where he ran the Facebook ads product and Facebook payments.
• Prashant's experience in financial services was more on the payment side than the capital or lending side.
• He joined Fundbox in 2016, drawn by the mission of empowering small business owners with access to capital at the right moment.

Anchit Singh's Journey and Role at Fundbox

• Anchit Singh joined Fundbox in 2017, drawn to the FinTech industry.
• He started as an analyst, working on various roles in data science, product, and credit.
• Anchit's journey included becoming more external-facing in the last two years to build the embedded partnership business.
• He emphasizes the importance of learning and contributing to the small business economy.

Embedded Lending and Its Impact on Small Businesses

• Nik and Prashant discuss the concept of embedded lending and its impact on small businesses.
• Prashant explains the three waves of embedded lending: co-location, data integration, and product tailoring.
• Fundbox uses data from platforms like QuickBooks, FreshBooks, and One to underwrite and assess business risk better.
• The conversation highlights the benefits of embedded lending, including faster and more convenient access to capital for small businesses.

Innovations in Small Business Lending

• Anchit discusses the innovations in small business lending, particularly after the 2008 financial crisis and during COVID-19.
• The shift from manual underwriting to automated underwriting is highlighted, with Fundbox being one of the early adopters.
• The use of various data sources, such as invoicing, payment processing, and cash flow, has become crucial for underwriting.
• Post-COVID, there is a growing demand for platforms to underwrite business revenue based on total revenue, not just platform-specific data.

Challenges and Opportunities in Small Business Lending

• Prashant discusses the challenges and opportunities in small business lending, emphasizing the importance of data and credit.
• The conversation highlights the need for advanced models to predict risks and mature credit practices.
• Continuous technology and product innovation are essential for success in the embedded lending space.
• Fundbox's focus on partner obsession and the ability to underwrite through various data sources are key to their success.

Successful Partnerships and Future Plans

• Prashant shares examples of successful partnerships, including with Intuit and Pro.
• Fundbox's partnership with Bluevine, a former competitor, is highlighted as an example of unexpected opportunities.
• Anchit discusses future plans, including exploring new partnerships with banks and platforms like FreshBooks and Wave.
• The conversation emphasizes the importance of meeting partner needs and continuously innovating to provide better solutions for small businesses.

The Role of Banks in Embedded Lending

• Prashant discusses the role of banks in embedded lending, with many banks taking a more active role in technology.
• Banks are exploring partnerships with fintechs to provide solutions for small business customers.
• The conversation highlights the potential for banks to use Fundbox as a banking-as-a-service play.
• The discussion emphasizes the importance of creating value in ecosystems and the potential for various partnerships.

Final Thoughts and Future Directions

• Nik asks about the best place for small business owners to find Fundbox online.
• Prashant provides information on how small business owners can access Fundbox's products and services.
• The conversation concludes with a focus on the importance of continuous innovation and meeting partner needs.
• Fundbox's commitment to providing the best possible solutions for small business owners and their partners is emphasized.

Transcript

Nik Milanovic  00:04

Well, welcome back. Everyone. Excited to have people back for another episode of This Week in Fintech weekly podcast. I'm joined today by Prashant Fuloria, the CEO at Fundbox, and Anchit Singh. Fundbox’s Chief Business Officer.