Market Perspective

C2FO and Marcus by Goldman Sachs Team Up to Provide Business Credit Lines to Suppliers

June 29, 2021
The C2FO Team

The partnership provides a new way for companies that use the C2FO platform to access affordable capital that could help them grow.

In an effort to help businesses obtain greater access to liquidity and a fully digital alternative to traditional lending, C2FO and Marcus by Goldman Sachs have announced a partnership that will offer business lines of credit to selected companies in the United States that use the C2FO platform.  

Marcus, which is Goldman Sachs’ digital lending platform, offers fixed interest rates on business lines of credit that are competitive with business credit card APRs. The partnership with C2FO will enable Marcus to eventually provide credit lines to thousands of additional companies that use the C2FO platform.

C2FO is only the third company to partner with Marcus for a direct business line of credit program, following Walmart and Amazon. The value to suppliers is clear: rapid, highly accessible capital at rates competitive with business credit cards. 

Reducing the friction of capital access

Starting in June, eligible US suppliers on the C2FO platform were invited to access credit lines that range in value from $10,000 to $250,000. The lines of credit will have an introductory fixed annual rate of between 6.99% and 9.99% — better than the rates offered by many business credit cards. 

Talks of a possible partnership between C2FO and Marcus began last summer. Ashish Jain, senior vice president and head of capital markets for C2FO, had just learned of the announced lending program between Marcus and Amazon. He called his contacts at Marcus, who were already aware of the hundreds of thousands of companies worldwide that use the C2FO platform.

“I reached out and said, ‘We are a platform with substantial networks that has 225-plus buyers and over 1.2 million SMBs,’” Jain said. “And they quickly saw why working with the world’s largest platform for working capital made sense.” 

Unlike traditional credit lines, which can take weeks to process, lending through C2FO and Marcus is a digital experience that can deliver streamlined funding to suppliers, Jain said. Borrowers can use the funding for short-term operating costs and overhead while freeing up valuable capital to purchase more inventory, invest in product development or expand into new markets.

“The key to a healthy capital operation is to have multiple sources of funding available, in order to support longer-term growth and immediate needs without putting it all on cash flow,” Jain said. “This fully digital experience provides a unique option that we know businesses want today, which is unavailable through traditional banks. It’s a powerful and convenient option that we’re proud to open up to our supplier community.”

A business line of credit provides a borrower with greater flexibility than that of a traditional bank loan. While a loan provides a lump sum of credit, a line of credit offers the borrower a revolving credit limit, much like a credit card, that can be utilized repeatedly and whenever needed.    

Applying for a business line of credit through Marcus, on the other hand, is a simple, 100% digital process. Once your business is approved for the line of credit, you can start requesting funds right away.*

The program in partnership with Marcus offers another tool, in addition to C2FO’s other working capital solutions, to help generate affordable capital exclusively for companies in the C2FO network. Companies that are approved will have the flexibility to request funds as needed, enabling them to access and deploy capital at opportune moments.

Providing affordable liquidity when companies need it

The partnership comes at a time when access to affordable liquidity is as crucial for businesses as ever. In C2FO’s 2021 Working Capital Survey of more than 6,700 small to mid-sized businesses worldwide, 32% of SMBs based in the US said their borrowing costs had increased in the past year due to the COVID-19 pandemic.

“This program is going to help a lot of small businesses grow. As we’ve seen over the past year, access to capital is not fair across all small businesses by any means,” Jain said. “We are giving businesses access to loans in a fast, easy underwriting process. It is key to keep in mind that our process includes significantly less friction to these loans than getting an asset-backed, secured loan from a bank.”

The Marcus business line of credit was introduced to a select number of US suppliers in June, but there are plans to rapidly expand the program over the following months. Currently, C2FO serves more than one million companies, representing $10.5 trillion in annual sales across more than 180 countries. 

The Marcus-C2FO partnership follows the digital lender’s partnerships with Amazon and Walmart, and C2FO provides Marcus with access to its vast supplier network, spanning a wide array of industries. In that way, the lines of credit can pump liquidity into supply chains worldwide across many different industry verticals.

“Access to affordable working capital remains a challenge for businesses and supply chains around the world,” said C2FO Founder and CEO Alexander “Sandy” Kemper when the partnership between C2FO and Marcus was announced in May. “With this partnership, we are increasing access to low-cost, convenient capital just as we have been working to do since 2010 through our accelerated payment programs. Giving smaller businesses multiple ways to access working capital can help them grow and prosper.”


*Marcus Business Line of Credit (“Marcus”) Draw Request Disclosure
Approval of your business’s Marcus draw request is based on your business’s creditworthiness at the time of request and other factors. There is no obligation for Marcus to extend credit at any time and approvals of Marcus draw requests are made in its sole discretion. Additional details can be found in your business’s Marcus line of credit agreement. Marcus draw requests can occur until 5:00 p.m. ET two business days prior to the end of your draw period. If Marcus decides not to approve your business’s draw request, your business may not be able to request a new draw for 30 days from the date of decline. The minimum draw amount your business may request is $500. Marcus may reduce your business’s credit limit for any reason.

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