First Citizens Bank’s Silicon Valley Bank division, along with lending partner Trinity Capital, provided a $125 million warehouse facility to Parafin, a financial technology infrastructure startup. Recently named to the 2024 Fintech Innovation 50, Parafin helps companies, such as marketplaces and vertical software-as-a-service and payment processors, launch and embed financial services for their sellers.
Provided by SVB’s national fintech practice, the financing facility will support Parafin in providing capital to businesses on platforms such as DoorDash and Amazon. Parafin employs a machine learning-based underwriting model based on sales performance to determine eligibility and create personalized financing offers. Since Parafin’s launch in 2020, it has served thousands of businesses and extended $5 billion in offers.
“Small businesses often face barriers to financing. Parafin’s goal is to help them overcome those challenges and get them the capital they need,” Sahill Poddar, CEO of Parafin, said. “We’re thrilled to partner with SVB and Trinity, which will expand our financial service offerings and capacity to supply sellers with fast and flexible financing to scale their businesses.”
“Parafin is helping sellers, creators and entrepreneurs bridge their cash flow needs, invest in their growth and focus on what they do best: running their business,” Brian Foley, market manager for SVB’s warehouse and fintech group, said. “SVB is proud to continue our strong relationship with Parafin and provide them with the financial solutions and advice they need to grow and help more business owners.”
“We’re proud to partner with the teams at Parafin and SVB to provide this warehouse financing facility,” Steven Lambe, managing director of warehouse lending at Trinity Capital, said. “Parafin’s impressive financing platform will continue to empower small and medium sized businesses with flexible capital solutions.”
