Stone informed the market today that it had secured a $467.5 million financing commitment from the US Development Finance Corporation (DFC), a US government agency. The disbursement of the transaction, which has a final term of seven years with an initial disbursement period of up to six months, "will help strengthen Stone's ability to provide receivables anticipation to MSMEs, which use the solution to optimise cash flow, financial flexibility, improve management and reduce the risk of non-payment," it said in a release.
The focus of the funding line is to support companies led by women or with a majority representation of women in their workforce. In addition, the resource is intended to impact mainly entrepreneurs in the North and Northeast regions of Brazil.
"Small and medium-sized entrepreneurs represent an important part of the GDP. Aligned with our purpose, the DFC line allows us to offer better products and services to our customers and contribute to the socio-economic development of our country", says Pedro Zinner, CEO of StoneCo, "With the resources raised we will be able to further leverage our solutions to support entrepreneurs looking to scale their businesses. At the same time, we generate a strong positive impact on society, boosting local commerce, creating employment opportunities and leveraging economic activity."
According to Stone, "a good portion" of the customers who use the POS ( Point of Sale ) pay 100% of their credit card receivables in advance. "This demonstrates that this type of transaction is the most efficient way to finance working capital and is sometimes the only avenue available to small and micro retailers," concludes Zinner. The news reinforces the company's commitment to strengthening the entrepreneurial ecosystem in the country.
Stone informed the market today that it had secured a $467.5 million financing commitment from the US Development Finance Corporation (DFC), a US government agency. The disbursement of the transaction, which has a final term of seven years with an initial disbursement period of up to six months, "will help strengthen Stone's ability to provide receivables anticipation to MSMEs, which use the solution to optimise cash flow, financial flexibility, improve management and reduce the risk of non-payment," it said in a release.
The focus of the funding line is to support companies led by women or with a majority representation of women in their workforce. In addition, the resource is intended to impact mainly entrepreneurs in the North and Northeast regions of Brazil.
"Small and medium-sized entrepreneurs represent an important part of the GDP. Aligned with our purpose, the DFC line allows us to offer better products and services to our customers and contribute to the socio-economic development of our country", says Pedro Zinner, CEO of StoneCo, "With the resources raised we will be able to further leverage our solutions to support entrepreneurs looking to scale their businesses. At the same time, we generate a strong positive impact on society, boosting local commerce, creating employment opportunities and leveraging economic activity."
According to Stone, "a good portion" of the customers who use the POS ( Point of Sale ) pay 100% of their credit card receivables in advance. "This demonstrates that this type of transaction is the most efficient way to finance working capital and is sometimes the only avenue available to small and micro retailers," concludes Zinner. The news reinforces the company's commitment to strengthening the entrepreneurial ecosystem in the country.