Parafin, a leading embedded finance company, today announced the launch of Pay Over Time, the latest addition to its suite of financing products. Pay Over Time introduces a new payment method that lets small businesses defer payments on essential expenses such as inventory, equipment, payroll, advertising, and rent—directly within the platforms they already use. The product is already live with Gusto as a payroll line of credit.
Expanding access to fast, flexible financing
Parafin has already extended over $14 billion in financing offers to hundreds of thousands of small businesses through its capital products. With Pay Over Time, Parafin is broadening access by embedding real-time credit at the point of need—whether at checkout, on invoices, or during payroll runs—helping businesses better manage everyday expenses alongside long-term investments.
AI-driven underwriting for real-time decisions
Unlike conventional lenders who rely on personal credit scores, Parafin uses LLM-powered AI models to analyze raw banking activity in real time, turning thousands of unstructured transactions into a clear picture of business health. This enables credit decisions in as little as 10 seconds with high approval rates, while platforms benefit from seamless integration as Parafin manages underwriting, compliance, and servicing.
“By harnessing large language models and layering our own proprietary models on top, we can assess the financial profile of businesses in real time and deliver credit decisions with low latency, all while maintaining high approval rates,” said Vineet Goel, Chief Product and Technology Officer and Co-founder of Parafin. “Pay Over Time empowers platforms to support their customers at the exact moment of purchase, payment, or payroll. With this launch, we’re just getting started on building a comprehensive suite of financial solutions designed for speed, scale, and the realities of small business financing.”
Momentum across industries
In addition to payroll, Pay Over Time is already expanding into use cases such as:
- Freight booking
- Restaurant equipment financing
- Dental supply procurement
- Digital advertising
These early applications underscore the flexibility of the product and the broad demand for embedded financing that adapts to the realities of running a business.
A growing suite of financial solutions
Pay Over Time joins Parafin’s existing capital and credit solutions, creating a more complete suite of financing solutions that help businesses manage cash flow and invest in growth. Together, these offerings ensure small businesses can access the right type of financing at the right time and without friction.
