Parafin, a pioneer in embedded financial infrastructure, has entered into a forward-flow agreement with Cross River Bank, a key provider of technology-driven financial solutions. Under this partnership, Cross River’s Principal Finance Group commits to acquiring up to $360 million in assets, bolstering Parafin's capacity to deliver working capital and financing to small businesses through embedded platforms.
Parafin inks forward-flow agreement with Cross River for up to $360M in assets.
Enhances embedded finance for small businesses on platforms like Amazon, Walmart.
Marks Parafin's first off-balance sheet capital commitment.
Supports scalable growth in working capital and merchant financing.
Aligns with mission to abstract capital markets complexity for platforms.
Parafin has extended over $14B in offers to hundreds of thousands of businesses.
This agreement equips Parafin with a reliable capital source to address the escalating funding demands of small businesses integrated into major platforms. Parafin's white-labeled services encompass working capital and business financing, seamlessly delivered to merchants and small enterprises. As the company's inaugural off-balance sheet commitment, it underscores a strategic step toward responsible scaling amid rising platform and merchant needs. “This is a key milestone in our mission to deliver fast, flexible, and accessible financing products to small businesses,” said Sahill Poddar, CEO and Co-founder of Parafin. “It enhances our ability to scale responsibly and meet rising demand from platforms and merchants that depend on Parafin to drive growth for their respective businesses. We’re excited to partner with Cross River in our shared commitment to innovation and our mission to equip businesses with the financial tools they need to grow.”
Cross River’s Principal Finance Group specializes in credit facilities and forward-flow arrangements tailored for fintech innovators tackling financial system gaps. This commitment empowers Parafin to broaden its impact, ensuring frictionless financing access for underserved small businesses. “We’re proud to provide a committed capital solution that empowers Parafin to expand its reach and deliver frictionless access to financing where it's needed most,” said Rahul Jha, Head of Principal Finance at Cross River. By aligning with Parafin, Cross River advances its dedication to capital access, fostering an inclusive economy where entrepreneurs can thrive.
The collaboration between Parafin and Cross River reflects a unified effort to construct robust financial tools that enable small businesses to navigate economic uncertainties. Parafin's integrations with platforms such as Amazon, Walmart, and DoorDash have already facilitated over $14 billion in financing offers to hundreds of thousands of users. This partnership amplifies that reach, simplifying underwriting, compliance, and servicing complexities while promoting innovation and growth.
The forward-flow agreement between Parafin and Cross River Bank represents a pivotal advancement in embedded finance, providing the committed capital essential for scaling support to small businesses and driving economic inclusion through innovative financial infrastructure.
Parafin is a financial infrastructure company that provides platforms with embedded financial products for their small businesses by abstracting the complexity of capital markets, underwriting, servicing, compliance, and customer support. By powering the embedded financial services of merchants platforms, small businesses can run and grow themselves despite uncertain economic conditions.
To date, Parafin has launched on Amazon, Walmart, DoorDash and more platforms to serve hundreds of thousands of businesses and extended over $14 billion in offers.
Parafin was founded in 2020 by Sahill Poddar, Vineet Goel, and Ralph Furman, and is backed by Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures.
Cross River provides technology infrastructure powering the future of financial services. Leveraging its proprietary real-time banking core, Cross River delivers innovative and scalable embedded payments, cards, lending and crypto solutions to millions of consumers and businesses. Cross River is backed by leading investors and serves the world’s most essential fintech and technology companies. Leading the industry, Cross River is reshaping global finance and financial inclusion. Member FDIC. Find out more at www.crossriver.com.
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