Founded in 2011, the MarketInvoice platform funded £3 million in its first year, £30 million in its second year, £66 million in its third year, and over £50 million in the first quarter of 2014.
The firm claims that fast growing UK businesses are turning to MarketInvoice because, in contrast to traditional invoice finance, it offers funding with transparent rates, no lock in period, no debentures, and with no requirement to put all invoices through the platform.
The £150 million, which has come from both the UK government and institutional investors, has been channelled via thousands of transactions to businesses up and down the country, giving them working capital to grow.
Thanks to the sophisticated algorithms which power the MarketInvoice platform, money can be in a client’s account within 90 minutes of signing up and the loss rate for investors is 0.04 per cent.
Co-Founder and CEO, Anil Stocker, said: “It wasn’t so long ago that we were advancing our first £6,000 against a Post Office invoice.
“Now, in just a short space of time, we’ve put £150 million straight into the real economy; funding businesses that are hiring, growing, exporting and forging ahead with new products and services across a wide range of sectors.”
Online platform MarketInvoice is a working capital solution, giving SMEs immediate access to funds otherwise tied up for between 30 to 120 days.
Invoices are funded by a global pool of sophisticated investors, made up of high net-worth individuals, asset managers and hedge funds. As of August 2013, the UK Government also began investing in SME invoices via MarketInvoice as part of its Business Finance Partnership scheme. This initiative will see £40 million channelled through the platform over a 12-month period.
Invoices sold on MarketInvoice must be due to large corporate customers or public sector organisations and can be as small as £5,000 or as large as £1.5 million-plus.
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