Settle secures USD $240 million facility to expand lending

Settle has secured a USD $240 million credit facility from an international financial institution and a New York asset manager, adding to its lending capacity.

The facility will allow the company to support larger customers and offer financing products not previously available through its platform. Settle provides cash flow management and working capital products for companies that sell physical goods.

The financing continues the New York-based company's run of institutional backing. In 2022, Settle closed a USD $280 million revolving credit facility co-led by Citibank and Atalaya, followed by a USD $145 million credit facility from Silicon Valley Bank in 2023.

Settle's total originations have now passed USD $4 billion, and it has provided working capital to thousands of businesses across the United States.

Broader lending base

The new arrangement expands the capital available for Settle's lending business at a time when many smaller companies still face tighter access to finance from banks and other traditional providers. The company focuses on product businesses, a segment that often needs short-term funding to manage inventory purchases, supplier payments, and other operating costs.

Its platform combines bill pay, accounts payable automation, invoice tracking, and financing. Settle presents that mix of software and funding as a way for businesses to manage cash flow and bridge gaps between paying suppliers and receiving revenue.

Settle did not identify the international financial institution or the New York asset manager involved in the facility. It described the commitment as another sign of support from institutional capital providers.

Market focus

Working capital finance remains an area of demand for small and medium-sized businesses, particularly those that carry stock or face long payment cycles. For many companies in consumer goods, wholesale, and other product-led sectors, access to credit can determine how much inventory they can buy and how quickly they can expand into new channels.

Settle has built its business around that need, targeting brands that may not fit standard bank lending models. The new facility will help it serve businesses at more stages of growth, from smaller operators to larger accounts.

Alek Koenig, Chief Executive Officer and Co-Founder of Settle, said the new credit line would affect customers across its base.

"This is a huge win, not only for the larger accounts we support, but for the SMB space as well," said Alek Koenig, Chief Executive Officer and Co-Founder of Settle.

Koenig said the company still sees a gap in how capital markets serve smaller businesses.

"We continue to see small and medium-sized businesses being overlooked by traditional capital markets, and that is exactly the problem we set out to solve. This facility strengthens our ability to serve businesses at every stage of their growth and unlocks financing solutions that these businesses simply cannot find anywhere else today," Koenig said.

Settle is backed by investors including Ribbit Capital, Kleiner Perkins, Caffeinated Capital, Stripes, Founders Fund, SciFi Ventures, Citi Ventures, and Activant Capital. Its recent financing history suggests it continues to attract support from both bank and non-bank capital sources as it expands its lending operations.

The additional USD $240 million comes as specialist finance groups seek to fill gaps left by mainstream lenders, particularly in areas where underwriting depends on understanding cash conversion cycles and inventory patterns. Settle's originations have exceeded USD $4 billion.