VOX & Raven Capital's $150M deal targets SMB Lending

VOX Funding, a leading provider of flexible financing solutions for U.S. businesses, has closed a $150 million credit facility with Raven Capital, a New York-based investment firm specializing in asset-based direct lending. The transaction was announced on May 28, 2025, and marks a significant milestone for VOX Funding as it continues to expand its platform and offerings in the alternative credit space.

Key Details:

• Purpose of Funding: The new credit facility will enable VOX Funding to further scale its operations and expand its capacity to provide flexible, non-dilutive financing to small and mid-sized businesses across the United States. The company aims to deepen the value it offers to partners and maintain high standards in alternative financing as it grows.

• Company Background: Founded in 2018, VOX Funding has established a reputation for reliability, flexibility, and innovation, combining advanced technology with a relationship-driven approach to underwriting and customer service. The company has funded over $750 million through its platform to date.

• Leadership Commentary: Adam Benowitz, CEO of VOX Funding, described the partnership as a major step forward in the company's long-term vision, highlighting Raven Capital's expertise and understanding of VOX's business model135. John Shaheen, Managing Director at Raven Capital, emphasized the opportunity to accelerate capital access for entrepreneurs and support business growth.

This credit facility positions VOX Funding to further solidify its leadership in the alternative credit sector, allowing the company to support more U.S. businesses in need of working capital solutions. The partnership with Raven Capital is expected to drive continued innovation and growth for both firms in the evolving landscape of alternative finance.

Industries Served

VOX Funding positions itself as a generalist alternative lender, serving a broad range of small and medium-sized businesses across the U.S. The company explicitly cites experience funding businesses in:

• Law firms

• Professional services

• Retail operations2

Additionally, VOX Funding’s programs are marketed as suitable for "all business types," including those turned down by traditional banks, and are commonly used for:

• Inventory purchases

• Marketing campaigns

• Equipment upgrades

• Payroll and working capital

Their products—merchant cash advances, invoice purchasing, and working capital advances—are designed for businesses with at least 12 months in operation and $100,000 in annual gross sales. This generally targets established small businesses rather than startups or micro-enterprises.

Risk Management and Downturn Exposure

VOX Funding’s model—advancing funds against future receivables—can be attractive in growth periods but is inherently exposed to downturn risks. If a funded business’s revenue declines sharply, the risk of non-repayment increases. Industry observers point out that MCAs and similar products, while fast and flexible, can lead to borrower distress if future sales projections do not materialize. This risk is compounded by VOX’s willingness to fund businesses with poor credit, relying primarily on sales history and projected revenue.

Summary Table: Key Metrics and Practices

What this funding round suggests about market conditions?

VOX Funding's new credit facility highlights ongoing demand and investment in alternative financing for SMBs.

For market participants, this funding round suggests a growing, yet potentially competitive, landscape within the alternative financing space. VOX Funding's facility enhances their value to partners and upholds their standard in alternative financing.

For competitors in VOX Funding's target segments (merchant cash advance, working capital, invoice purchasing), this additional capital means a larger capital base typically enables a lender to offer more competitive terms to attract customers and gain market share.

It is important to note that, according to Traders Union review, VOX Funding's online visibility and authority are "well below the industry standard," indicating "very low online visibility and authority" and suggesting a potential lack of trustworthiness and recognition in the digital space for some evaluators.

Their "Overall Trust Index" is also low, reflecting "significant issues across multiple aspects for VOX Funding, including poor user feedback, low engagement, and possibly unresolved customer complaints".

This mixed assessment implies that while they have secured significant institutional funding, their general market perception might still be evolving, which could influence their competitive strategy and potentially lead them to offer attractive pricing to build trust and market presence.

VOX Funding does not disclose its charge-off or default rates, which is common in the merchant cash advance and alternative finance sectors. This lack of transparency means there's no verifiable data on VOX's portfolio performance. Since VOX bases eligibility on sales and receivables rather than creditworthiness, there's a risk of higher defaults if future revenue falls short. The absence of charge-off metrics makes it hard for peers to assess VOX's risk profile, especially during economic downturns.

But Raven Capital's backing is noteworthy. They excel in asset-based lending, and their significant investment indicates thorough research on loss rates, recovery metrics, and portfolio performance. We can say they're not taking a gamble.

This could mean that the company has good connections working quietly, or that the timing of these large credit facilities in mid-2025 shows that big investors are still confident in alternative lending, even with the uncertain economy.

Smart competitors should watch for improved customer service and marketing spend.

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