Parafin announced a new credit facility led by Goldman Sachs, alongside One William Street Capital Management.
The facility will support Parafin’s embedded lending platform and help expand access to capital for more small businesses through the software platforms and marketplaces they already use.
Parafin is an embedded financial infrastructure company that provides financing products to small businesses through partners including Amazon, DoorDash, Gusto, TikTok Shop, Walmart, and other platforms.
The new credit facility builds on Parafin’s recent warehouse credit facility expansion with Silicon Valley Bank, EverBank, and Trinity Capital. The additional financing capacity will help support products designed to help small businesses manage cash flow, invest in growth, and handle day-to-day operating needs.
Parafin said demand for embedded lending remains strong among small businesses, with the majority of its fundings going to repeat borrowers. The company has funded more than 50,000 businesses to date and has extended over $35 billion in offers to small businesses across the United States and Canada.
The company’s platform is designed to help marketplaces, vertical SaaS platforms, and payment processors offer financing at the point of need. Parafin abstracts the complexity of capital markets, underwriting, servicing, compliance, and customer support so platform partners can offer financing products directly to their small business users.
Parafin was founded in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman. The company is backed by Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures.
KEY QUOTES:
“Small businesses increasingly expect financial products to be built into the software and platforms they already use to run their businesses. Embedded lending is becoming a critical part of how businesses access capital, and this facility strengthens our ability to meet that demand at scale. Through our expanded financing capabilities, we are accelerating the delivery of flexible financing to small businesses from every part of the economy, supported by this credit facility from Goldman Sachs and One William Street.”
Sahill Poddar, Co-Founder and CEO of Parafin
