Andrew Gunner recalls late nights reconciling expenses in airport terminals between client calls and flights. As an independent consultant, he managed admin tasks on-the-go, a type of inefficiency he now seeks to eliminate at FreshBooks.
“The difference between 48 hours and a half hour for some businesses is really significant,” said Gunner, now Head of Product at FreshBooks. He aims to help small business owners save time and streamline processes by embedding financial tools into existing software, making them feel like natural extensions of workflows.
FreshBooks approaches embedded finance as a seamless integration rather than a separate addition, incorporating payments, capital access, and automation to maintain business momentum and reduce complexities.
Embedded finance is defined as a deep integration of financial management and execution, seen in tools like FreshBooks Payments which allow users to accept credit card or bank payments via invoices. In 2023, FreshBooks collaborated with YouLend to offer flexible financing to 100,000 US customers, enabling them to pay a percentage of daily card transactions instead of fixed monthly repayments.
“When our customers use our platform for financial management, they provide data that we can leverage to get them approved for loans, unlike traditional institutions, empowering them with their own data,” Gunner said. This is beneficial for service-based businesses with cash flow gaps, providing capital tools to manage receivables and finance upfront costs.
FreshBooks has partnered with Stripe for payment capabilities, introducing Instant Payouts, allowing eligible users to access funds in 30 minutes instead of 48 hours. With expanded eligibility, Instant Payouts usage has grown by nearly 40%, significantly impacting small businesses.
Despite relying on partners like Stripe, FreshBooks focuses on designing the end-to-end experience. “We’ve invested in providing and investing in owning the experience while using world-class technology from partners like Stripe,” Gunner said. Automation and AI investments streamline operations, categorize expenses, and detect fraud, aimed at simplifying and not complicating business processes.
FreshBooks sees embedded finance as an evolving concept. While embedded payments are widely adopted in North America, the next phase will integrate capital, payroll, and other capabilities into one system, requiring continuous customer interaction. Gunner’s past experience juggling tasks in airport terminals drives his focus on product design to give time back to users.
“Saving moments for them to reinvest in growing their business is our focus,” Gunner concluded.
FreshBooks is creating faster, simpler payment tools for small businesses. Learn more.
Feature image by Pexels. Headshot of Andrew Gunner by FreshBooks.