Banana Exchange, a New York based FinTech company providing funding to Merchant Cash Advance businesses across the US, is looking to raise up to US$ 25m in growth debt.
Launched in 2017 by industry veterans, the company uniquely re-factor MCA providers' portfolios through the use of a proprietary technology platform, which closely monitors MCA providers' portfolios, controls ACH daily payments and diverts payments to the group in case of a MCA provider default. Since their formation, they have funded $6.5m against RTRs in excess of $40m with a zero-default rate.
The company are looking to use the capital it raises to capitalise on the current market opportunity in light of the COVID-19 pandemic. Well-established MCA businesses are expected to see significant growth in business, therefore requiring additional sources of capital.
Banana Exchange are proposing an 8% annual coupon over a three-year period, with repayment of the capital at maturity spread over a period of up to 12 months, in line with client repayments to Banana.