Fintech company Mercury secured a credit warehouse with Natixis Corporate & Investment Banking for $100 million.
The mentioned funds will be used to develop the company’s corporate credit card business. In the two years since Mercury launched the specified business, its IO World Elite Mastercard has become the most popular corporate product among the firm’s customers. The relevant information is contained in a message that was published on the company’s blog on Wednesday, October 9th.
Dan Kang, vice president of finance at Mercury, said that given the growth of the firm’s business, funding the credit card program through the mentioned warehouse facility is a natural evolution. He also separately noted that the financing is backed by receivables of companies and allows it to extend credit to more customers.
Mercury is currently working to provide startups with early access to loans. In this case, it means startups that have recently been incorporated, or are in the process of obtaining financing and have a limited credit/banking history.
It is worth noting that since the beginning of last year, Mercury has doubled the percentage of customers who are eligible for an IO World Elite Mastercard. The corresponding result was achieved against the background of underwriting updates enabled by clients’ cash balances held within the company.
It’s also worth noting that Mercury continues to add new features and capabilities to its cards. In this case, merchant-locked cards are meant; for daily, weekly, monthly, or temporary spend limits; custom card expiration dates; custom mapping rules that automatically categorize card transactions; and a subscription dashboard that enables companies to view all their card subscriptions.
Dan Kang stated that the firm continues to invest in its IO card program. In this case, among other things, financial injections in product development, hiring staff, and the elaboration of new functions are implied. Dan Kang noted that the investment continues off the balance sheet. He also separately underlined that the new credit warehouse will allow the firm to sustainably expand its business in the next stage of growth.
In September 2022, Mercury launched its IO card. This solution has been added to the list of products that the company offers to startups and entrepreneurs.
Mercury co-founder and chief executive officer Immad Akhund stated that the most requested feature among the firm’s customers is a credit card. He also stated that with the IO card, the company wants to provide businesses with a simple and accessible option that can be set up and scaled really fast.
In April, Mercury expanded into the consumer banking business by launching Mercury Personal. In this case, it means a self-service option that founders and investors can use for their personal needs.
It is worth noting that in the modern banking landscape, a situation has emerged in which most digital lenders are focused on offers that can be described as basic. In this case, it implies a focus on servicing people with low incomes and those who, for certain reasons, are not consumers of traditional banking services. At the same time, financial institutions belonging to the category of traditional banks offer industry-standard solutions and wealth management, implying routine communication with the banker even when such a simple task as sending a wire transfer is provided. Against the background of this state of affairs, many founders are interested in accessing a powerful self-service banking option. Mercury Personal can meet the corresponding need.
As we have reported earlier, Blockchain Startup Story Secures $80 Million.
