Spain-based supply chain fintech Twinco Capital has raised a EUR 50 million debt facility with BBVA Spark to bridge the gap in trade finance. Twinco Capital, a supply chain fintech company, has obtained a EUR 50 million facility from BBVA Spark to address the significant USD 2.5 trillion global trade finance gap, as per the press release.

This gap primarily impacts SMEs in emerging nations, hindering their access to new business prospects. The funding aims to boost Twinco Capital's expansion and support businesses in overcoming this financial hurdle. Enabling sustainable global supply chains The Spain-based supply chain fintech offers one of the first sustainable supply chain finance solution in the market that covers purchase order funding and has provided over USD 250mln in funding to suppliers in emerging markets.

Officials from BBVA Spark said they are  pleased to support Twinco’s founders, who have reinvented the way supply chains are financed on a global scale and who have also incorporated innovative environmental and social criteria into their supplier financing model. Twinco is a venture-backed business, with investors such as Quona Capital, Working Capital Fund, Mundi Ventures, and Finch Capital. On the debt side, BBVA Spark will become one of Twinco’s key financial partners and joins EBN Banco de Negocios who has been supporting the company from its inception, and Zubi Capital.

Also commenting on this development, Twinco’s representatives said they are happy to partner with BBVA Spark to help customers build truly sustainable and competitive global supply chains. It is only by partnering with this calibre of like-minded, financial institutions, that they will be able to address large-scale challenges like the one Twinco has set out to solve: closing the trade finance gap. This facility will support the company’s portfolio growth, expanding both the number of customers and geographies.

How does Twinco Capital operate? Twinco Capital engages with large corporations—mostly in the retail and apparel sectors—and offers funding to their suppliers worldwide, advancing up to 60% of the purchase order value upfront and paying the remainder upon delivery. The process is designed to be a fully transparent, no-hassle experience that provides the suppliers with funding for its purchase orders within 48 hours. The key to its success is its unique risk model, which complements the traditional view of financial risk with business performance and ESG data.

In other words, it uses machine learning to assess the quality and strength of the commercial relationships between these large buyers and their suppliers. The company is growing rapidly and has already incorporated more than 150 suppliers, located in 13 different countries. Since launching in December 2019, Twinco Capital has grown by multiples of 3, supporting global trade during the pandemic and funding millions of purchase orders.

The fintech’s officials added that the value Twinco is providing to customers stems from the combination of its unique funding solution with business intelligence that provides a holistic overview of supply chain risk. Technology and machine learning provide invaluable data insights on commercial, financial and ESG suppliers’ performance, giving their customers a state-of-the-art supply chain risk management tool. .