Parafin Powers SpotOn Capital, Bringing Improved Underwriting and Lower Financing Costs

SAN FRANCISCO--(BUSINESS WIRE)--Parafin, a financial infrastructure company for embedded lending, today announced that its underwriting and capital platform now powers SpotOn Capital, the financing program built into SpotOn’s restaurant and financial technology platform. The partnership gives eligible restaurant operators better access to financing, lower costs, and faster funding.

Operators who refinanced with SpotOn Capital in partnership with Parafin offers paid 35% less on average for their financing than under their previous programs.* One operator reduced its monthly payments by nearly 50% after switching to SpotOn Capital.

“The needs of platforms and their customers change over time, and their financial products should be able to change with them,” said Sahill Poddar, Co-founder and CEO of Parafin. “SpotOn saw an opportunity to improve its capital program for restaurant operators, and we're proud to help them deliver lower costs, broader access, and a program that can continue to evolve."

SpotOn completed the migration to Parafin in two months, with no change to how merchants apply for or manage financing.

Beyond handling underwriting and capital disbursement, Parafin also manages servicing, compliance, and program operations. Parafin’s AI-powered underwriting model evaluates restaurant revenue and overall business performance, rather than relying primarily on personal credit scores, making financing accessible to operators that traditional lenders overlook. This gives companies like SpotOn the infrastructure to launch, operate, and evolve lending programs without building those capabilities in-house.

"For restaurant operators, financing has always come with too many trade-offs: slow approvals, rigid terms, and underwriting that doesn't account for how a restaurant actually runs," said Doron Friedman, Chief Innovation Officer at SpotOn. "By partnering with Parafin, SpotOn Capital looks at real business performance, not just a credit score. That means more operators qualify, get better terms, and can get access to funding faster.”

SpotOn Capital is available now to eligible businesses through the SpotOn dashboard. To learn more, visit spoton.com/solutions/capital.

*Based on SpotOn internal data. Reflects operators who refinanced from their prior capital program into SpotOn Capital during 2025-2026. The 35% average reflects total cost of financing under SpotOn Capital compared to each operator's prior financing program. Individual savings vary by business performance, financing product, and offer terms.

About Parafin

Parafin is a financial infrastructure company that provides platforms with embedded financial products for their small businesses by abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support. By powering the embedded financial services of merchant platforms, small businesses can run and grow themselves despite uncertain economic conditions. In just a few years, Parafin has launched on Amazon, Gusto, and more platforms to serve hundreds of thousands of businesses and extended over $35 billion in offers.

About SpotOn

SpotOn is a leading restaurant and financial technology company that helps operators run smarter, more profitable businesses. Known for its flexible, cloud-based restaurant management system and 24/7 support, SpotOn offers a complete point-of-sale with online ordering and reservations, labor management, AI-powered P&L analysis, and access to best-in-class integrations. SpotOn builds restaurant technology designed for peace of mind and delivers it with hospitality. For more information, visit www.spoton.com

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