Miami Based Marco Financial Aims At The $350 Billion Latam Trade Gap
Miami’s fresh startup venture, Marco Financial recently announced its success at securing a $26 Million in funding. The recent aid is expected to empower the startup to take a shot at $1.5T tade gap that disrupts the effective functioning of the SME’s across the globe.
As the name suggests, it is Miami’s first ‘tech-enabled’ financing platform that caters to serve the macro or small and medium-sized business ventures. It bridges the gap that these micro level businesses face in accelerating their operations in the US.
Explaining the current situation of small and medium-sized businesses across the US,Javier Urrutia, director of Foreign Investments at PROCOLOMBIA, explained. “For smaller businesses in Latin America, accessing trade finance to export their goods is a major concern and a top reason why many don’t succeed.” Further, the leading Columbian organization that promotes FI and non-traditional exports in the country explained that. “In Colombia alone, a 1% increase in exporter productivity in our textile industry would result in 500,000 new jobs for the country.”
The common image of SMEs in the US is that they are not very operational when it comes to getting easy access to securing funds and loans from traditional institutions due to the regulations and capital controls amended after the 2008 financial crisis.
The longer periods with no access to working capital happens to resist the speed of operations in businesses as the orders are shipped but these businesses rely on the payment cycles to receive money from receivables. Marco, on the other hand, reduces the pressure that these businesses have to face on their supply chain and eliminates the time taken to secure funds from these lending organizations and bridge the gap by as early as 24 hours.
Informing the audience more on the struggle to gather capital, Peter D. Spradling, COO and co-founder of Marco exclaimed. "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," he further added "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."
Currently, after their round of seed funding, Marco Financial currently aims on countries like Mexico, Colombia, Chile, Uruguay, and Peru. The reason behind the selection of such markets is due to Spradling’s working experience as an importer and exporter across the suggested region.
Lastly, for their companies future endeavours, Peter D. Spradling also said that they will also be targeting the dormant companies as well as the leading businesses in the market.