In a press release today, June 11th, Pipe, a modern capital platform, has announced the closing of a $100 million credit facility from Victory Park Capital (VPC), a global alternative investment firm specializing in private credit. This strategic partnership aims to bolster Pipe's Capital-as-a-Service solution, enabling access to capital for millions of small and medium-sized businesses (SMBs) that have historically faced challenges in securing traditional financing options.
Highlights
Expanded Funding Capacity: The $100 million credit facility, with the potential to upsize up to $200 million in the future, will allow Pipe to expand its existing capacity to more than $1 billion per year in originations for SMBs.
Innovative Capital-as-a-Service Solution: Pipe's recently launched embedded Capital-as-a-Service solution has already garnered support from leading platforms, including Priority, Infinicept, and Boulevard, representing nearly one million merchants with over $140 billion in gross payment volume. This innovative solution enables vertically integrated software vendors and payment companies to seamlessly embed Pipe's proven capital offering into their ecosystems, improving merchant experience and monetizing payments in a mutually beneficial way.
Streamlined Access to Capital: Through Pipe's infrastructure and APIs, end merchants can access capital easily based on their secure transaction data from partner platforms, bypassing many of the hurdles associated with traditional financing.
Partnership with Experienced Fintech Player: Pipe's partnership with Victory Park Capital, a seasoned alternative investment firm, underscores the company's commitment to providing innovative capital solutions to underserved businesses. This collaboration leverages the expertise of both organizations, potentially leading to more efficient and effective financing options for SMBs.
As the demand for alternative financing solutions continues to grow, Pipe's Capital-as-a-Service offering and its strategic partnership with Victory Park Capital position the company as a key player in the fintech landscape.
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