Build vs. Buy for Embedded Lending: A Founder's Hard-Won Lessons with Mark Hollemann

Are you thinking about adding embedded lending to your platform?

Mark Hollemann, co-founder of Spring (a B2B embedded lending provider that reached $1 million in ARR before shutting down), shares the real story behind build vs. buy decisions in embedded lending.

From underwriting engines to debt financing, Mark breaks down what it takes to build lending products—and why most companies should think twice.

Key Topics:

• The three core building blocks of any lending platform (licensing, underwriting, servicing)
• Why marketplaces are uniquely positioned for embedded lending success
• How to evaluate embedded lending providers and avoid common pitfalls
• The capital-intensive reality of lending businesses and investor expectations
• Why Europe's fragmented market makes scaling embedded lending especially challenging
• Practical advice for running a proper vendor selection process
• When to build in-house vs. when to partner with external providers

Perfect for fintech founders, marketplace operators, and anyone considering embedded financial services.

(00:00) Introduction to Embedded Lending(02:32) Mark's Journey with Spring(03:32) Challenges in Building a Lending Platform(05:26) Understanding Embedded Lending Products(07:44) B2B vs B2C Lending(09:27) The Long Tail of Small Businesses(11:43) Buy vs Build: Key Considerations(16:13) Building Blocks of a Lending Platform(19:09) Understanding Licensing, Underwriting, and Servicing(19:33) Challenges in Underwriting and Lending Models(20:38) Providers and Solutions for Underwriting(23:53) Debt Financing and Initial Loans(26:21) Build vs. Buy: Market Trends and Decisions(27:58) Segmenting the Market of Lending Providers(31:12) Advice for Companies on the Buy Journey(33:44) Excitement in Embedded Lending and Marketplaces(36:41) Conclusion and Contact Information