The New Financing Opportunity for Original Equipment Manufacturers (OEMs): Embedded Finance


Historically, there were two financing strategies for OEMs to assist equipment buyers with financing.

OEMs could partner with one or more third-party lenders or finance companies to recommend financing at the point of sale.


  • Financing recommended at point-of-sale
  • Low risk
  • No capital allocation
  • Avoid finance company overhead


  • OEM gets no buyer data
  • Not convenient for buyer
  • OEM relinquishes control to lender
  • OEM brand at risk
  • Terms of financing, credit data, and repayment data not available to OEM
  • Limited ability to sell additional equipment

OEMs could create a captive finance company to provide customer financing.


  • Increase control over the sales process
  • Direct access to borrower data and credit
  • Additional revenue opportunity
  • Improved buying experience
  • Control over brand/reputation


  • Distraction from focus on core mission
  • Increased operating costs
  • Higher business risk in credit, compliance
  • Significant capital requirements
  • Staffing expertise challenges

The new digital financing capabilities of embedded finance create an entirely new opportunity for OEMs to provide manufacturer-controlled equipment financing. Embedded finance refers to integrating new, digital financial services directly into equipment sales.

Embedded finance dramatically improves the customer experience, presents additional revenue opportunities, and unlocks massive cost savings and repeat business potential for manufacturers. McKinsey & Company predicts that OEMs, Fintechs, and Banks will collaborate to establish embedded finance delivery models (See McKinsey & Company Chart, below). (see McKinsey & Company Exhibit 1, below).

The New Finance Model for Manufacturers

QuickFi enables the benefits of a manufacture captive finance company without the cost, risk or complexity. QuickFi allows a manufacturer to provide captive financing capabilities at a fraction of the cost.

QuickFi benefits include:

  1. Improved Customer Experience – With QuickFi, manufacturers can provide customers with a seamless, 100% digital, nearly instant financing experience. QuickFi makes manufacturers easier to buy from, creating meaningful marketplace differentiation for equipment manufacturers.
  2. Control the Customer Experience and Terms – QuickFi enables OEMs to control the customer financing experience, including the terms and conditions of the lease and loan contracts, to ensure equipment purchasers experience prompt, fair, transparent financing that reflects positively on the manufacturer’s brand and marketplace reputation.
  3. Enhanced Repeat Business and Repeat Sales – QuickFi makes it easy for equipment customers to obtain loan and lease financing to acquire new equipment. Repeat transactions may be facilitated in minutes, allowing a manufacturer’s best customers to transact seamlessly for additional equipment acquisitions as needed. Because the OEM controls the QuickFi platform, all the credit data regarding the OEM’s customers is available for the OEM to use in advanced marketing and sales initiatives.
  4. No Risk or Capital Investment Required – QuickFi enables OEMs to continue partnering with third-party banks and finance companies to provide customer financing. But with QuickFi, the OEM can take back control of the financing experience and the finance offerings from third-party banks and finance companies. With QuickFi, OEMs control the customer financing experience and may quickly and easily change funding partner banks. With QuickFi, the OEM, not the bank, controls the customer financing portion of the equipment purchase.
  5. Full Captive Finance Company Potential – Interested OEMs can transition from third-party bank financing to establish a 50-state compliant captive finance capability (enabling the OEM to lend its own money if desired). Without purchasing costly software or hiring dozens of sales, operations, credit, collections, accounting, and compliance professionals, an OEM using QuickFi can offer 50-state financing through the 100% digital, QuickFi embedded finance platform.
  6. Treasury Flexibility – The output of the QuickFi platform is digital chattel paper, which is deposited securely in a manufacturer’s digital vault. The terms and conditions contained in the digital chattel paper are widely accepted among banks and finance companies. QuickFi digital lease or loan transactions up to $5 million each may be easily transferred to US banks for over-exposure, credit management, capital replenishment, or risk management reasons. For manufacturers that use QuickFi to operate a captive finance business, the manufacturer may wholesale loans and leases to third-party banks and finance companies while maintaining the servicing of those loans and leases (still serviced in the manufacturer’s name) on the QuickFi platform. In addition, securitization is available as a wholesale funding option for OEMs operating a captive finance company on QuickFi.

QuickFi has an average TrustPilot score of 4.9 on a scale of 5.0. QuickFi dramatically improves the buying experience for customers who acquire equipment.

OEMs using QuickFi gain access to valuable customer credit data, which significantly improves their capabilities for future AI and marketing initiatives.

QuickFi is the only embedded finance solution for global OEMs seeking a full-service digital platform with a presence in 50 states and Canada.

QuickFi requires no upfront cost and no long-term contractual commitment. Using QuickFi is less than 1/3 the cost of building out and operating the traditional bank–finance company model (operating at scale).

Move Your OEM to Embedded Equipment Finance in 30 Days

Over the next five years, embedded finance for SMEs will displace traditional sales distribution models. Bain and Company suggest, “Demand [for embedded finance] will grow because the proposition promises to improve customer experiences and financial access, along with providing cost-reduction.” Now is the time for banks and OEMs to decide how they will offer embedded equipment finance.

Schedule a meeting today to learn more about implementing an embedded equipment finance solution.