Teya and finmid Launch Fast Embedded Financing for SMEs in Croatia and Hungary

Teya and finmid have partnered to launch embedded financing for SMEs in Croatia and Hungary, with a pilot in Portugal. This move addresses the significant debt financing gap in Central and Eastern Europe by using real-time performance data to provide pre-approved funds, offering fintech professionals a blueprint for scaling credit in underserved markets.

What was announced

The partnership integrates finmid’s embedded lending infrastructure directly into the Teya platform, targeting thousands of local businesses in Croatia and Hungary. By leveraging real-time performance data already present within the Teya app, the system provides pre-approved financing to SMEs that have traditionally struggled with limited credit histories or insufficient collateral. The speed of the service is a primary focus, with funds typically reaching merchants in a median of three minutes.

Repayments are structured as a Merchant Cash Advance, where payments are linked to monthly revenue rather than fixed installments. This flexibility allows businesses to use capital for various needs, including equipment purchases or marketing campaigns. Early results from the collaboration indicate strong traction, with over 500 Teya merchants already financed and the service receiving a Net Promoter Score (NPS) of 86.

As a full-stack financing partner, finmid handles the complexities of underwriting, compliance, and capital provision. This expansion into Central and Eastern Europe (CEE) addresses a significant debt financing gap, which remains among the highest in the European Union. Beyond the initial rollout in Croatia and Hungary, the companies have also initiated an early-stage pilot programme in Portugal. Teya currently supports more than 80,000 businesses across nine European markets, and this integration adds credit to its existing suite of payments and expense management tools.

"Teya’s mission is to help local businesses thrive, and access to capital at the right moment is critical to that. Merchant Cash Advance makes funding simple, with financing embedded into Teya and repayments linked to sales. Together with finmid, we’re bringing this convenient experience to members in EU markets where it hasn't previously been available, starting with Croatia, Hungary and Portugal."

Sahithya Vemana, Head of Banking, Teya

The companies involved

Teya is a financial services provider focused on supporting local businesses across Europe. The company currently serves a base of over 80,000 merchants, providing a comprehensive technology stack that includes payment processing, business accounts, and expense management. Teya has established a significant presence in nine European markets, positioning itself as a central platform for SME operations. Its strategy involves building a pan-European marketplace that integrates various financial tools to help small and medium-sized enterprises manage their daily operations and growth.

finmid operates as an embedded lending infrastructure provider, enabling B2B platforms to offer financing directly to their users. The company provides the technical and regulatory framework necessary for platforms to become lenders, covering everything from capital to servicing. finmid’s infrastructure is currently utilized by major platforms including Bolt, Wolt, and Delivery Hero, and the company now operates across more than 30 markets. Data from finmid’s existing programmes suggests that merchants using their financing see a sales uplift of up to 45%, with high renewal rates of approximately 80%. For the platforms themselves, the integration of these lending services has been shown to reduce merchant churn by up to 70%.

What FF News has reported before

FF News has closely followed the growth of both companies as they expand their footprints in the European fintech ecosystem. We previously reported on how Embedded Lending Leader finmid Secures €17M to Fuel Bolt and Skroutz Partnerships, a funding round that underscored the increasing demand for integrated credit solutions. Teya has also been active in diversifying its product range; we covered the launch of their high-yield products in Teya and ClearBank Launch 3% AER Instant-Access Savings Pots for UK SMEs. Furthermore, the company’s regulatory trajectory was highlighted when Teya Joins FCA Scale-up Unit to Accelerate Regulatory Growth and Product Innovation, a move designed to support its expansion across complex European regulatory environments.

What this means

This partnership highlights a critical shift in how credit is provisioned in the CEE region, where traditional banking infrastructure often fails small businesses. By bypassing traditional credit scores in favor of real-time transaction data, Teya and finmid are challenging the dominance of legacy lenders in Croatia and Hungary. This move puts significant pressure on local commercial banks that have been slow to digitize their underwriting processes. The primary question for the sector now is whether this data-driven model can maintain its low-friction payout speeds as it scales into more diverse regulatory environments like Portugal, and whether competitors will be forced to adopt similar embedded models to prevent merchant churn.