Parafin Secures $300M Forward-Flow Deal With NY Alts Manager

Parafin has entered into a new $300 million forward-flow agreement backed by a leading New York-based alternative asset manager, according to the firm, expanding its capital base as demand for embedded financing solutions continues to grow.

Under the agreement, up to $300 million of loans originated through Parafin’s platform will be purchased into a rated investment vehicle, providing the fintech with additional long-term funding capacity to support lending across its network of platform partners.

The transaction builds on recently announced funding partnerships with Goldman Sachs, EverBank, and a renewed commitment from First Citizens, further diversifying Parafin’s institutional funding sources.

“As demand for embedded financing continues to grow, this partnership gives us additional capacity to scale responsibly and provide more small businesses with fast, flexible access to the capital they need to grow,” said Sahill Poddar, chief executive officer and co-founder of Parafin.

The announcement comes as Parafin surpasses 50,000 unique small businesses funded through its embedded finance platform. The company currently offers three core products—working capital financing, buy now, pay later (BNPL) solutions and business credit cards.

The latest transaction marks Parafin’s second forward-flow agreement, following a $360 million facility established with Cross River Bank.

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