TL;DR: Picking an embedded finance partner is not just a commercial decision. It is a product decision. This checklist covers underwriting transparency, integration depth, support model, regulatory posture, and the operational realities that determine whether the partnership scales or stalls.
Why partner choice is a product decision, not a BD decision
Most embedded finance partnerships are initiated by a business development team on both sides. The platform wants to add value. The finance provider wants distribution. The deal is signed commercially and handed to a product or integration team to implement.
This sequence creates problems. The BD team is optimising for the commercial terms. The product team inherits the partner's constraints after the fact. Underwriting rules that do not match the platform's user profile. Integration requirements that take six months to build. Support models that leave the user unclear on who to call.
The partnerships that work are the ones where the product team is involved from the first conversation. Not to slow things down. To ask the questions that determine whether the partnership can actually deliver on what the BD team has committed to.
Underwriting and credit transparency: what to ask
Questions to ask before committing:
- What data do you need to assess a customer? Can you access it from our platform directly, or does the customer need to submit documents separately?
- What are your typical approval rates for businesses with our user profile?
- What is your average assessment time from application to decision?
- What happens when a customer is declined? Is there a specific decline reason? Can they reapply?
- How do you handle disputed assessments? What is the escalation path?
A finance partner who cannot answer these questions clearly either has not embedded before, or has a black-box model they are not comfortable explaining. Neither is a good sign.
Integration depth: API surface, data flow, error handling
Integration depth determines how seamlessly the finance product appears in your platform. The range is wide.
At the shallow end: a referral link. The user clicks, leaves your platform, completes an application on the finance provider's site, and comes back. Low build effort. Low user experience. High drop-off.
At the deep end: fully embedded. The finance option appears within your UI. Consent and data-sharing happen via a pre-agreed API integration. The user never knows they have left your product.
Before committing, get clarity on: What API endpoints are available? What consent framework governs data-sharing? What does the error handling look like? What is the testing and sandbox environment? What is the release cycle and change management process for API updates?
See FundTap's accounting software integrations for an example of how this works in practice.
Support and operations: who handles the customer when something goes wrong
A workable support model has three components:
Ownership by query type. Platform supports questions about where the feature is and how to access it. Finance provider supports all questions about the advance: amount, status, fee, repayment, and any dispute.
Visible escalation path for the user. The user should know who to contact before they have a problem. This means clear in-product labelling and a support contact for the finance element.
SLA alignment. If the platform commits to 24-hour response on all support queries, the finance partner needs to match that for finance queries. Misaligned SLAs create customer complaints that land with neither party clearly owning the response.
Regulatory posture in AU and NZ
In Australia, credit provision is regulated under the National Consumer Credit Protection Act (NCCP) for consumer credit. Invoice finance to SMEs typically falls outside consumer credit regulation but is still subject to ASIC's conduct requirements. Partners should confirm: who holds the credit licence, what the scope of that licence covers, and what disclosure requirements apply at the point of offer.
In New Zealand, the Credit Contracts and Consumer Finance Act (CCCFA) governs consumer credit. SME invoice finance generally sits outside CCCFA scope but is subject to the Financial Markets Conduct Act for certain conduct standards.
The platform bears some reputational risk for the finance product it promotes. Due diligence on the partner's regulatory posture and complaint history is reasonable and appropriate before launch.
Commercial structure: referral, revenue share, white-label, fully embedded
| Structure | Integration depth | Revenue model | Typical for |
|---|
| Referral link | Low | Fixed fee per funded customer | Directories, marketplaces, advisor networks |
| Revenue share | Medium | Percentage of finance revenue | Accounting software, ERP systems |
| White-label | High | Revenue share or fee arrangement | Banks, large fintechs, established platforms |
| Fully embedded | Very high | Revenue share with joint marketing | Strategic platform partnerships |
The full checklist
Underwriting
- Data requirements confirmed and accessible from our platform
- Approval rates benchmarked against our user profile
- Assessment time committed in writing
- Decline reason and reapplication process agreed
Integration
- API documentation reviewed
- Consent and data-sharing framework confirmed
- Error handling specified
- Sandbox environment available
- Change management process for API updates agreed
Support and operations
- Support ownership by query type agreed
- Escalation path visible to the user
- SLAs aligned
- 30-day post-launch review scheduled
Regulatory
- Credit licence confirmed and scope reviewed
- Disclosure requirements at point of offer confirmed
- Complaint history reviewed
Commercial
- Structure agreed (referral / revenue share / white-label / embedded)
- Revenue model documented
- Review and renegotiation trigger agreed
Frequently asked questions
What is an embedded finance partnership?
An embedded finance partnership is a commercial arrangement where a software platform integrates a financial product from a provider directly into their product experience. The end user accesses the financial product without leaving the platform.
What questions should a platform ask a finance partner about underwriting?
Five key questions: What data do you need and can you access it from our platform? What are your typical approval rates? What is your average assessment time? What happens when a customer is declined? How do you handle fraud?
Who handles customer support in an embedded partnership?
The platform handles UX questions. The finance provider handles all questions about the advance. Agree the hand-off point in writing before launch and review it in the first 30 days.
How does FundTap structure platform partnerships?
FundTap offers referral or revenue share models with integration depth ranging from simple referral links to API-level integration. FundTap handles underwriting, onboarding, compliance, funding, and collections. See the FundTap partner programme.
Evaluating an embedded finance partner for your platform? Talk to FundTap.
Author: Shane Laurence, Head of Growth at FundTap. Published: 15 May 2026. Updated: 15 May 2026.
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