#USA #Palo Alto #TD Bank #B2B e-commerce #Drip Capital

Drip Capital Secures $50 Million Credit Facility from TD Bank

In a significant move towards enhancing its footprint in North America, Drip Capital, a global leader in digital trade finance and B2B e-commerce solutions, has successfully secured a committed credit facility of $50 million from the Toronto-Dominion Bank (TD Bank). In addition to this initial funding, there is potential to increase the facility by an additional $25 million, providing Drip Capital with ample resources to propel its operations further.

TD Bank, known for its vast network and robust financial presence, is ranked among the top ten banks in North America with over $1.5 trillion in assets. This collaboration marks Drip Capital's inaugural partnership with TD Bank and aims to bolster the company's Buyer Finance program, specifically targeting the United States and Canada markets.

The newly acquired credit facility will enable Drip Capital to extend collateral-free working capital lines of up to $5 million to small and mid-sized businesses (SMBs). This initiative is particularly crucial as it allows Drip Capital to pay suppliers directly, offering clients up to 120 days for repayment. Such a model not only assists these businesses in managing their cash flows more effectively but also helps to extend their payment cycles while enhancing their relationships with suppliers—without the need for existing bank lines or collateral pledges.

Pushkar Mukewar, Founder and CEO of Drip Capital, expressed enthusiasm about the new funding, stating, "This fundraise reflects Drip Capital's strong performance and the growth potential in North America. Our partnership with TD Bank will help us scale Buyer Finance across one of the world's largest trade and consumption markets."

The potential impact of this funding is substantial, especially considering the findings of the U.S. Small Business Administration, which indicates that there are approximately 34.8 million small businesses in the nation. These firms represent an impressive 99% of all U.S. companies, contributing nearly half of the total workforce. However, a significant number of these businesses struggle to obtain financing from traditional banks that are often reluctant to extend unsecured credit.

The International Chamber of Commerce and the Asian Development Bank have estimated a staggering $2 trillion trade finance gap globally, disproportionately affecting SMBs. Karl Boog, Chief Business Officer at Drip Capital, noted, "Our solutions are designed for exactly this segment. Every company’s finance team can benefit from having a collateral-free, flexible credit line to procure goods and services. Despite our rapid growth, we've only scratched the surface. Drip Capital is quietly financing the supply chains behind millions of purchases in North America."

What’s more, TD Bank joins an impressive roster of global lending partners for Drip Capital, which includes notable institutions such as Barclays, the World Bank's International Finance Corporation, and East West Bank among others.

In summary, Drip Capital's acquisition of this $50 million credit facility from TD Bank not only signals a critical step in its growth strategy but also reinforces the company’s commitment to supporting the SMB sector in North America. By providing much-needed financial flexibility, Drip Capital is poised to bridge significant financing gaps, fostering growth and innovation in a sector that plays a vital role in the economy.

For more information about Drip Capital and its services, visit Drip Capital's official website.