Marco Financial is doubling down on growing its client base and portfolio after entering into a $200 million financing deal with MidCap Financial.
The Miami startup also completed a $8.2 million equity funding round led by Arcadia Funds, a lender based in Burlington, Massachusetts. Founded in 2019, Marco Financial facilitates cross-border trade by providing working capital to small- and medium-sized exporters.
Smaller businesses often struggle to obtain financing from traditional banks, said co-founder and COO Peter D. Spradling. Globally, banks reject more than 50% of trade finance applications from small- and medium-sized ventures. As a result, fewer than 10% of those companies in Latin America have access to financing, even though they make up 90% of all businesses in the region.
"We believe that when there's economic uncertainty this is exactly the time when lenders should help businesses," he said. "The umbrella should be given to businesses when the forecast shows rain, not when it's sunny."
Marco reports it lent $100 million to businesses last year and has financed more than $254 million with zero losses since its founding. The startup aims to fund $750 million by the end of 2023, with a focus on businesses located in the U.S. and Latin America.
In addition to Miami, Marco Financial has offices in New York and Montevideo, Uruguay. The company has 60 employees globally, with 20 based at its Brickell headquarters.
The startup closed an $82 million financing round back in 2021 and has secured a total of $118 million from investors since its inception.
"Our new financing comes during a tremendous period of growth ... and demand for our services," said co-founder and CEO Jacob Shoihet. [This] 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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