Embedded capital isn't one thing. There are five product structures that we’ve typically seen platforms offer, and they solve different problems.
- A charge card gives your users a billing cycle, usually 30 days, to float business purchases interest-free. The full balance is due at the end of the cycle, paid automatically from a linked account. No revolving balance, no interest. The right fit for businesses that have lumpy, predictable spend cycles and want float between when money goes out and when revenue lands.
- A revolving credit card works similarly but gives users the option to carry a balance month to month, paying interest on what they don't pay off. More flexible than a charge card for users who can't always clear the full balance at cycle end, but it comes with interest costs if they don't.
- A merchant cash advance (MCA) provides a lump sum upfront, paid as a percentage of daily receivables. Payments flex automatically with the business's performance: strong month, faster payment; slow month, less. No fixed due date. The right fit for businesses with high daily transaction volume and predictable revenue, where a fixed repayment schedule would create risk.
- Invoice factoring converts outstanding invoices into immediate cash. Instead of waiting 30 to 45 days for a customer to pay, the business gets the value of that invoice now, minus a fee. The right fit for businesses with long payment terms and operating costs that can't wait: freight carriers, staffing agencies, service businesses with enterprise clients.
- A line of credit gives businesses access to a pre-approved pool of capital they can draw from as needed and repay over time. They only pay for what they draw. The right fit for businesses with uneven or seasonal capital needs where the timing and size of draws is hard to predict in advance.
The product that works is the one whose payment structure matches the timing and shape of your users' cash flow.
Three cash-flow patterns that map to capital products
- Spend now, revenue later. The business has predictable spend cycles but a lag before revenue lands. An ecommerce brand buying inventory ahead of a peak season. A DTC operator spending on paid acquisition before that spend converts to sales. The need is float: a window between spend and repayment. Card products fit here. A charge card gives users a fixed billing cycle to float purchases interest-free, with full repayment at cycle end. A revolving credit card gives users that same float with the option to carry a balance if they can't clear it all at once. The tradeoff is flexibility against interest cost.
- Revenue exists, but it's locked up. The business has completed work and issued invoices, but payment terms mean the cash won't land for 30 to 45 days. Operating costs don't wait that long. Invoice factoring fits here. It converts outstanding receivables into immediate cash, minus a fee. Freight carriers, staffing agencies, and service businesses with enterprise clients are the natural cohort.
- Growth capital needed, revenue is recurring. The business has daily transaction volume and relatively predictable revenue, but needs working capital to operate or grow. An MCA fits here: a lump sum upfront, paid automatically as a percentage of daily receivables. Payments flex with performance. A line of credit fits a variation of this pattern where the capital need is uneven or seasonal: the business doesn't need a lump sum, it needs a pool to draw from as needed and repay over time.
Once you've identified which pattern fits your users, run it through the below filters.
Data availability
Underwriting depends on transaction history, processing volume, and business performance data. Card products and merchant cash advances are generally lower-friction to underwrite than factoring or lines of credit, which require cleaner, more complete data inputs.
Cash-flow pattern confirmation
Pressure test customers’ actual cash-flow needs before choosing the product. Ask whether they need short-term float for predictable purchases or a lump sum for growth and working capital. Then confirm how revenue comes in.
User structure
Take stock of how your users’ businesses are structured: sole proprietor vs. LLC vs. incorporated entity, years in operation, and revenue profile. Some products are only available to incorporated entities or have minimum revenue thresholds.
Credit profile
Some capital products rely on the business owner’s personal credit in underwriting. If your users are early-stage operators without established credit files, those products may exclude the segment that needs capital most.
What this looks like in practice
Platforms across industries use Unit to build financial products around different cash-flow problems, from capital products launched through Unit to banking and money movement infrastructure that supports a platform’s own capital offering.
Highbeam, an AI-powered financial platform for consumer brands, offers ecommerce operators charge cards with up to 60 days of interest-free float on ad spend and up to 2.3% cashback on purchases. For brands spending heavily on paid acquisition, the timing mismatch between ad spend and revenue is the central cash-flow problem. A charge card solves it directly.
Relay, a small business banking platform, offers its users a Visa charge card with a 30-day billing cycle, automatic repayment from a linked account, and up to 1.5% cashback. For small business owners who want short-term flexibility, the card extends purchasing power while keeping repayment and cash management inside a product they already use every day.
Outgo, a modern payments platform for the freight industry, offers invoice factoring for truckers. Outgo uses Unit to move factored funds from an operational account directly into truckers’ bank accounts, giving carriers quick access to cash after approved invoices are factored. Truckers can then use their Outgo debit cards for gas and other business expenses on the road. When invoices are paid, funds flow back to Outgo’s operational account. Outgo operates the factoring product, while Unit supports the banking, debit card, and money movement infrastructure around it.
A vertical SaaS company serving the restaurant industry offers its customers revolving credit as part of a broader financial product suite. Restaurants have high daily transaction volume and recurring revenue, but they also have thin margins and uneven cash flow across service periods. Revolving credit gives operators ongoing, flexible access to capital that grows with their business, backed by the transaction data the platform already holds.
The platforms that run successful capital programs started by understanding what their users needed the money to do, then found the product whose structure matched that need.
If you're working through this evaluation, I'm happy to compare notes. Drop me a line at patrick.izzo@unit.co.
Unit is a financial technology company and not a bank. Banking services are provided by Unit's bank partners, Members FDIC. Unit is not a lender. Merchant cash advances are purchases and sales of future receivables, not loans or extensions of credit. Lines of credit are loan products issued by Unit's credit partner. Capital products are for business purposes only and are subject to underwriting requirements, terms, and conditions.
Frequently asked questions
Which capital product structures does Unit offer?
Unit offers merchant cash advances, lines of credit, charge cards, and revolving credit cards. View our capital page for building blocks, or see what you can stand up with one line of code with Ready-to-Launch capital.
Can I get a capital product within Unit’s managed solutions?
Yes, Unit’s managed solution includes low-code and no-code options to offer merchant cash advances and lines of credit to your customers. If you want to build other capital products such as invoice factoring, talk to our team to learn more about custom solutions.
How long does it take to launch capital solutions with Unit?
Unit’s Ready-to-Launch is designed to get you to market in three weeks or less. Custom timelines depend on what you're building - a team launching a single capital use case will move faster than one building a multi-product financial workflow. Talk to our team to get a realistic estimate for your scope.
What does building on Unit’s API look like?
Explore the sandbox and read the docs.
