The loyalty loop is a continuous cycle where SMBs access timely, relevant funding directly within the platforms they already use, driving repeat usage, retention, and long-term engagement. Instead of one-off transactions, embedded finance creates an always-on relationship powered by data, speed, and convenience.

The loyalty loop is a continuous funding cycle where SMBs receive pre-approved, relevant offers within the platforms they already use, access funds quickly, and repay based on revenue—triggering future offers. This creates an ongoing engagement model that increases retention, repeat usage, and lifetime value.

The loyalty loop follows a six-step cycle that turns funding into an ongoing engagement engine rather than a one-off transaction.

1. Acquire
SMBs join a partner platform, generating valuable transaction and behavioural data.

2. Pre-approve
This data is used to assess eligibility in advance, triggering tailored funding offers without requiring an application.

3. In-platform offer
Funding is surfaced directly within the platform at relevant, high-intent moments.

4. Funding (<48h)
Once accepted, funds are typically delivered within 24–48 hours, reinforcing speed and reliability.

5. Revenue-based repayment
Repayments are automatically taken as a percentage of revenue, adjusting with business performance.

6. Renewal (avg. 62.9%)
As funding is repaid, new offers are triggered—continuing the cycle and driving repeat engagement.

Embedded finance earns SMB loyalty by delivering fast, relevant funding directly within existing workflows. By removing applications, reducing wait times, and aligning repayments with revenue, it creates a seamless experience that businesses return to repeatedly, strengthening both platform engagement and long-term retention.

In 2025, the most effective strategies combine real-time data, contextual funding offers, and seamless user experience. Platforms embedding financial products directly into workflows outperform traditional models by increasing conversion, reducing drop-off, and turning financial services into a core part of the customer journey.

Liberis uses platform-level transaction and performance data to assess eligibility and tailor funding offers. This enables pre-approved, highly relevant offers that reflect real business health, allowing faster decision-making and removing the need for lengthy applications or manual documentation.

On platforms like eBay and Vagaro, embedded finance is fully integrated into the user journey, making access to funding seamless and intuitive.

• Eligibility surfaced in-account: Businesses see offers directly in their dashboard
• Pre-approved offers: Eligibility is determined using existing platform data; no application required
• Instant decisioning: Offers can be accepted quickly with minimal friction
• Fast funding: Funds typically arrive within 24–48 hours
• Revenue-based repayment: Repayments are automatically deducted as a percentage of revenue, flexing with business performance

This creates a native experience where funding feels like part of the platform, not a separate financial process.

Vagaro: How does embedded finance drive retention?

Vagaro achieved 99%+ retention by embedding funding directly into its platform, allowing merchants to access capital without leaving their workflow. This increased engagement and repeat funding behaviour, reinforcing Vagaro as a critical partner in its customers’ growth.

eBay: How does embedded finance improve access and conversion?

Eligible U.S. eBay sellers can access up to $1M in as little as 24 hours, with offers surfaced directly within their accounts. By removing friction and leveraging platform data, eBay reduced drop-off and increased adoption, particularly among high-performing sellers needing fast, flexible capital.

Embedded finance differs from traditional bank lending by prioritising speed, relevance, and user experience.

This shift transforms lending from a transaction into a continuous engagement model.

• Renewal rate (62.9%)
  Percentage of businesses that take additional funding after repayment
  Source: Liberis internal data (2024 cohort)
• Retention rate (99%+, Vagaro)
  Percentage of merchants continuing to use the platform after adopting embedded finance
  Source: Vagaro case study
• Funding speed (93% <48h)
  Share of approved businesses receiving funds within 48 hours
  Source: Liberis internal data
• Funding limit (eBay: up to $1M)
  Maximum funding available to eligible sellers
  Source: eBay U.S. seller programme
• Provider fragmentation (33% use 4+ providers)
  SMB reliance on multiple financial providers
  Source: EY research

• Embedded finance
  Financial products integrated directly into non-financial platforms, enabling access within existing workflows.
• Revenue-based financing
  A model where repayments are tied to a percentage of revenue rather than fixed amounts.
• Pre-approved offer
  A funding offer generated using existing data, requiring no formal application.
• Loyalty loop
  A continuous cycle of funding, repayment, and renewal that drives ongoing engagement and retention.
• SMB / SME
  Small and medium-sized businesses; terminology varies by region but is often used interchangeably.