Twinco Capital and BBVA Spark Join Forces on Trade Finance

Supply chain FinTech company Twinco Capital has secured an additional 50 million euro ($53 million) facility with BBVA Spark, a banking unit for high-growth and innovative companies, to help small- to medium-sized businesses (SMBs) in emerging countries access trade finance.

These SMBs are the companies most impacted by a $2.5 trillion global trade finance gap, the companies said in a Friday (Oct. 27) press release.

Twinco said it offers a supply chain finance solution that provides purchase order funding to suppliers in emerging markets. With over $250 million in funding already provided, the company aims to reinvent the way supply chains are financed on a global scale while incorporating environmental and social criteria into their supplier financing model.

BBVA Spark has become a key financial partner for Twinco, the release said. The banking unit has facilitated 250 million euro (about $264 million) in financing within one year of operation.

Twinco engages with large corporations, primarily in the retail and apparel sectors, and offers funding to their suppliers worldwide, per the release. The company said its unique risk model combines traditional financial risk assessment with business performance and environmental, social and governance (ESG) data. By using machine learning, Twinco evaluates the strength of commercial relationships between buyers and suppliers.

Since its launch in December 2019, Twinco said it has experienced threefold growth, incorporating more than 150 suppliers located in 13 different countries, according to the press release. 

Sandra Nolasco, CEO of Twinco, said in the release: “This facility will support the company’s portfolio growth, expanding both the number of customers and geographies.”

Carmen Marin, chief operating officer of Twinco, added: “Technology and machine learning provide invaluable data insights on commercial, financial and ESG suppliers’ performance, giving our customers a state-of-the-art supply chain risk management tool.”

By introducing a credit line at the point of the purchase order, rather than at the point of invoicing, Twinco Capital has a much larger impact on SMBs’ working capital and empowers suppliers to take on larger orders, knowing that they have the funds to buy the raw materials, Nolasco told PYMNTS in an interview posted in January.

“We don’t care how big you are, we care how many orders you get,” Nolasco said.

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