10 years ago

MarketInvoice Secures $10 Million to Expand Invoice Finance Platform

  • MarketInvoice, a UK-based invoice finance platform, has raised an additional £6 million ($10 million) from existing investors Northzone and the family offices of Paul Forster

  • The funds will be used to fuel growth and roll out new products, including financing against licences, contracts, and subscriptions, as well as supplier finance

  • MarketInvoice's existing invoice finance offering allows invoice buyers, such as hedge funds, asset managers, and high-net-worth individuals, to bid in a real-time auction to determine how much of an invoice’s value they will provide as capital, minus their cut

  • MarketInvoice makes money by taking a small cut as well

  • The overall premise of MarketInvoice's new and existing products remains the same: to address the reluctance of UK banks to lend to small-to-medium-sized businesses following the banking crisis

  • In August 2013, the British government invested £5 million through MarketInvoice's platform as part of a wider bid to pump liquidity into the credit market for SMEs

  • MarketInvoice is also looking to benefit from the UK government's plan for an 'Innovative Finance ISA' to allow tax-free investing in peer-to-peer finance from April 2016.

      • ProblemFinancial Services

      "Small and medium-sized businesses (SMBs) in the UK face difficulty securing loans from traditional banks due to the lingering effects of the banking crisis."

      Solution

      "MarketInvoice provides a platform for SMBs to sell their outstanding invoices to institutional investors and high net worth individuals. This allows businesses to access capital quickly and efficiently, without the need for traditional bank loans."

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