Marco Financial—the first tech-enabled financing platform built for small and medium-sized Latin American exporters—has secured $26 million in funding and credit that will enable the company to address the $1.5 trillion global trade finance gap that disproportionately impacts small-and medium-sized (SME) businesses.
Marco supports SMEs based in Latin America, where a $350 billion trade finance gap blocks many exporters from the U.S. market. The funding includes an equity round, led by Struck Capital and Antler, and a credit facility underwritten by Arcadia Funds.
Marco’s credit facility, underwritten by Arcadia Funds, is the largest issued to a venture-backed pre-seed company, signaling confidence in Marco’s team, mission and approach. This comes on the heels of the July 1, 2020 United States-Mexico-Canada Agreement (USMCA), which seeks to create more balanced, reciprocal trade between the three countries. Additionally, recent heightened demand for exports and rapid technological innovations, like digital trade finance networks, reduce many barriers SMEs face in accessing trade finance. However, banks’ retrenchment, exacerbated by tighter regulations in the global pandemic and coupled with their hesitation to fully digitize documentary transactions, leaves credit-worthy SMEs needing fast, easy alternative financing options.
“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,” Peter D. Spradling, COO and co-founder of Marco, said. “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.”
