How Embedded Capital Programs Generate Platform Revenue

A platform earns from an embedded capital program by sharing in the spread on each advance. Here is how the 50/50 split works, a worked example, and what drives the number up or down.

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4 min read

Published On

Nov 9, 2026

Embedded capital programs earn platform revenue by sharing in the spread on each advance. With Slate, the platform shows the offer in its product and shares data. Slate funds the advance and carries the risk. The spread is split 50/50, so the platform keeps roughly 10% of funded principal per advance cycle.

Read: 5 minutes

Last updated: November 9, 2026

In this guide

Where the revenue comes from
A worked example
What moves the number
What the platform does and does not carry
Common questions

Where the Revenue Comes From

Slate offers merchant cash advances (MCAs) in Canada. An advance is a short-term amount, usually repaid over three to four months, priced with a factor rate of about 20%. The difference between what the business receives and what it repays is the spread.

Slate and the platform split that spread 50/50. That is the platform's spread share: about 10% of the funded principal on each advance cycle. It is earned when advances are funded and repaid, not from a flat fee for turning the program on.

Because advances run three to four months, a business that keeps using capital can go through about three cycles a year. The platform earns its share each time.

A Worked Example

This example is an illustration of the arithmetic, not a forecast. Use your own numbers.

A platform has 1,000 customers.
40% are eligible for an offer, which is 400 businesses.
18% of those take an advance, which is 72 businesses.
The average advance is $25,000, so funded volume is $1.8 million per cycle.
The platform's share is about 10% of funded principal, which is about $180,000 per cycle.
At about three cycles a year, that is roughly $540,000 a year.

Two sanity checks are worth running. If the result is more than about 5% of your annual recurring revenue, the assumptions are probably too aggressive. And the eligible share and the average advance should match your vertical: capital-intensive businesses sit toward the higher end.

What Moves the Number

Customer base. More active customers means more businesses who could be offered capital.
Eligible share. This depends on the data your platform can share. Richer data lets Slate read more of your customers.
Take rate. Offers shown in context, at the moment a business needs money, are taken more often than a link in a menu.
Average advance. It tracks the size of your customers' businesses and how they spend.
Repeat use. Customers who come back raise the number of cycles per year.

What the Platform Does and Does Not Carry

The platform's job is to surface the offer and share platform data for underwriting. Slate handles the rest: the capital on its balance sheet, underwriting, servicing, collections, compliance, customer support and credit loss. The platform has no credit exposure.

There are three ways to put the offer in front of customers: a no-engineering route where customers apply in Slate's hosted app, a drop-in banner and white-labeled component that takes about one developer and under a week, and a full API for a native experience. Most platforms start with the first or second to validate demand, then go deeper. See how it goes in.

Common Questions

How do embedded capital programs generate platform revenue?

The platform shares in the spread on each advance. With Slate the spread is split 50/50, which is about 10% of funded principal per advance cycle, earned as advances are funded and repaid.

Does the platform pay to start a program?

Slate funds the advances and runs underwriting, servicing and collections, so the platform does not put up capital or build servicing or collections. Talk to Slate for commercial terms.

Does the platform take on credit loss?

No. Slate carries credit loss. The platform has no credit exposure.

Where can I read more?

A Guide to Revenue in Embedded Capital covers cash advances and invoice factoring. An Introduction to Embedded Capital starts from the basics.

Ready to size it for your platform? Chat with an expert and we will estimate your revenue with your real numbers.