Marco, a tech-enabled trade financing platform built for SMEs in Latin America and the US, has received a $200m credit facility.
The facility was provided by middle-market lender MidCap Financial and global asset-based private credit specialist Castlelake. Marco also announced it raised $8.2m in equity funding, led by Arcadia Funds.
The company claims it couples smart decision models with best in-class industry experts. Marco said it is the first operating system for SMEs in trade in LatAm addressing the most pressing problem in today’s lending climate.
Marco added that it unleashes the big power of small businesses by simplifying, accelerating, and reimagining cross-border trade with cutting-edge technology.
The firm claims its tech-powered risk solutions outperform traditional financing methods, enabling SMEs to receive a decision within days instead of weeks and 24-hour approval turnaround, accelerating their ability to participate in the global economy.
Last year, Marco lent $100m faster than any other LatAm fintech, and has financed over $254m with zero losses since inception and saw 1,500%+ CAGR in funding between 2021 and 2022.
Marco aims to fund $750m by the end of 2023, focusing on target segments in the US and across LatAm, specifically in Mexico, Ecuador, Colombia, and Peru, where total exports exceed $490bn.
The new funding will support Marco’s growing client base and portfolio to expand its trade finance platform and suite of trade services aimed at closing the $2trn global trade finance gap that impacts SMEs.
Marco co-founder and COO Peter Spradling said, “Marco is addressing one of the most pressing yet under-recognized economic issues of today: the ongoing inability for small exporters in emerging markets to swiftly access capital. We believe that when there’s economic uncertainty is exactly the time when lenders should help businesses. The umbrella should be given to businesses when the forecast shows rain, not when it’s sunny.”
Jacob Shoihet – co-founder and CEO of Marco – added, “We’re extremely proud to have provided small businesses with more than $250M of liquidity in two short years, but the best is yet to come.
“Our team is working on some revolutionary products that address exporters’ critical needs, crafted by our new CTO, Nik Bougalis. Our new financing comes during a tremendous period of growth at Marco and demand for our services and will help us meet the pressing liquidity demands of small exporters who are increasingly vital to a healthy, thriving, and resilient global and borderless economy.”
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