Embedded credit done right: Why Gusto's Payroll Bridge wins big for SMBs - Tearsheet

"For many small business owners, the hardest part of running a company is making sure everyone gets paid on time. Cash-flow volatility can turn what seems like a simple task into a logistical puzzle for SMBs. Delayed payments, unexpected expenses, and seasonal spikes all put the most critical line item on the budget at risk. It's a stress point that's both financial and emotional - one that Gusto decided to tackle head-on."

"Enter Payroll Bridge, Gusto's embedded line of credit powered by Parafin. Launched in September 2025, it weaves funding directly into the Gusto payroll platform SMBs already use each pay cycle. Using Gusto payroll data and Plaid-linked bank account information, Parafin evaluates eligibility and risk without traditional credit scores. Business owners can apply for, accept, and tap financing without ever leaving Gusto's interface, turning a once multi-step process into a single, cohesive action."

"Gusto's Payroll Bridge won the Best Embedded Finance Product for SMBs at the 2025 Tearsheet SMB Finance Awards. The win reflects a product design rooted in how SMBs think, manage cash flow, and need support at the exact moment it matters. Dan Loomis, General Manager and Head of Product at Gusto Money, explains how Payroll Bridge was conceived and built to support SMBs in their day-to-day operations."

Payroll Bridge is an embedded line of credit integrated into the Gusto payroll platform and powered by Parafin, launched in September 2025. The product uses Gusto payroll data and Plaid-linked bank account information to evaluate eligibility and risk without relying on traditional credit scores. Business owners can apply for, accept, and access financing directly within the Gusto interface each pay cycle, streamlining what used to be a multi-step process. The product targets rising cash crunches around payroll—about one in three businesses report shortages when they need to run payroll—and earned industry recognition for its SMB-focused design.

Read at Tearsheet