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Marco raises $26 mn; aims to bridge the $350 bn LATAM trade finance gap

By Pavithra R

September 22, 2020

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Marco raises $26 mn
Peter D. Spradling, COO and co-founder of Marco

Marco Financial, a venture-backed, tech-enabled trade finance platform providing working capital to Latin American SMEs has announced that the company has secured $26 mn in funding and credit that will enable the company to bridge the $1.5T global trade finance gap that disproportionately impacts small-and medium-sized (SME) businesses.

The investment includes an equity round, led by Antler and Struck Capital, and a credit facility underwritten by Arcadia Funds, LLC. SMEs are growth drivers of international trade, accounting for 60% of total employment in advanced economies and 80% in developing countries, including those in LATAM. Yet these exporters face enormous financial hurdles due to long payment cycles. The gap between when goods are shipped by the exporters and when buyers submits payments can last up to 2-4 months, SME exporters often lack the capital to maintain operations while waiting for payment.

Founded in 2019 by Peter D. Spradling and Jacob Shoihet, Miami based Marco is a tech-enabled financing platform built for small and medium-sized exporters. Marco supports SMEs based in LATAM, where a $350 bn trade finance gap blocks many exporters from the U.S. market.

Marco provides fast and easy financing to LATAM SME exporters selling to U.S. buyers with a due diligence process that leverages real-time data to dynamically assess risk and mitigate capital loss. Its platform shortens the loan origination timeline from 2+ months to 1-2 weeks and provides funding to approved exporters within 24 hours. Marco financial streamlines the loan origination process and provides SMEs with operational capital at highly competitive rates.

“As a former owner of a small business in Latin America, I saw firsthand how SMEs in this region struggle to access trade financing that will let them export their goods while retaining enough capital to keep their business running. Access to trade finance is one of the greatest hurdles in business operations. The traditional system, dominated by banks, simply is not working anymore. It disproportionately hurts SMEs, restricts economic mobility and stifles job creation in emerging markets. With equity funding and a material credit facility we can serve this disadvantaged market in Latin America and help build a healthier, more equitable trade ecosystem reflective of an increasingly borderless global economy,” said Peter D. Spradling, COO and co-founder of Marco.

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