Marco Financial—the first tech-enabled financing platform built for small and medium-sized Latin American exporters—announced it has secured $26M in funding and credit that will enable the company to address the $1.5T 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, LLC.
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“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,” said Peter D. Spradling, COO and co-founder of Marco. “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.”
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.
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