Marco Financial, a U.S.-based tech-enabled financing platform built for small and medium-sized (SME) Latin American exporters, announced on Monday it raised $26 million in funding and credit. The funding includes an equity round, led by Struck Capital and Antler, as well as a credit facility underwritten by Arcadia Funds, LLC.
Founded earlier this year, Marco Financial describes itself as a tech-enabled trade finance platform providing working capital to Latin American SMEs.
“SMEs are growth-drivers of international trade, accounting for 60% of total employment in advanced economies and 80% in developing countries, including those in Latin America. Yet these exporters face massive financial hurdles due to long payment cycles. The gap between when goods are shipped by the exporter and when the buyer submits payment can last 2-4 months, an impossibly long wait for SME exporters who often lack the capital to maintain operations while waiting for payment.”
While sharing more details about the company’s services, Peter D. Spradling, COO and co-founder of Marco, stated:
“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.”
The company added the funding will enable it to address the $1.5 trillion global trade finance gap that disproportionately impacts SME businesses.