LONDON, July 10, 2013 /PRNewswire/ --
MarketInvoice, the innovative SME working capital finance provider, has announced today that they have reached the milestone of £50 million funded to British businesses through MarketInvoice since launching in February 2011. £35 million of this money was channelled through the platform in the last 12 months alone.
With more invoices being funded and auctioned every day, milestones are being reached at speed. This growth indicates that small businesses across the UK are embracing the ease of MarketInvoice's revolutionary "ebay for invoices" and are recognising the MarketInvoice model as a reliable and effective method of managing cash flow. This coupled with the £5 million MarketInvoice received from the UK Government to channel through the platform, shows how confidence in alternative finance models is growing.
Companies small and large - and in a wide range of industries - are using MarketInvoice as a flexible, affordable source of selective invoice finance, and more are joining every day - with auctions having a strong success rate. Most auctions close within 24 hours, with sellers receiving their funds the next business day. In today's fast paced business environment MarketInvoice offers companies a finance solution that is fast, flexible and transparent, putting business owners back in control.
Since launch over 1000 auctions have taken place, and the average funding request on the platform is £55,000. Over 250 companies have auctioned their invoices on the website, each company using the platform 3 or 4 times a year on average. Around 28% of the total value funded through the platform has been for export invoices, helping British businesses deliver goods and services across the world. Without MarketInvoice these businesses would have been heavily stunted and growth would have been slower. Industries involved include manufacturing, construction, professional services, business support, media and technology - all of whom have found the unique method of invoice discounting useful.
"We are excited to have hit such an incredible milestone here at MarketInvoice. We are aiming to hit the next milestone faster and look forward to working with more companies in the future. The incredible growth of MarketInvoice shows that there is tremendous appetite among small and midsize businesses for access to affordable capital."
Anil Stocker, Co-Founder, MarketInvoice
MarketInvoice is the UK's first online trading marketplace allowing businesses to selectively sell the invoices of large business customers to raise flexible working capital. Businesses register on MarketInvoice, and then auction invoices due to be paid in 30, 60, 90 days, receiving cash in advance from global institutional investors who compete to provide funding at the lowest cost. Since 2011, over £50 million has been channelled to over 250 businesses. It is a new model of invoice finance.
Cash funding for SMEs is provided through competitive auction from a wide range of institutional buyers (investment funds, asset managers, family offices, high net worth individuals). MarketInvoice serves to bring new capital into this market by creating a standardised and secure trading environment. It encourages those SMEs that do not wish to enter into traditional factoring due to cost, contractual, and reputational concerns, to selectively use the competitive marketplace at times when short-term funding is desired or required. Importantly, using MarketInvoice is completely confidential to a business' end customer and no notification is necessary. Companies maintain control of their invoice collection procedures and customer relationships.
The main advantages of using MarketInvoice can be summarised as follows:
- Immediate funding (money arrives within 48 hours)
- Complete confidentiality (non-disclosure to end customers, you preserve your valuable client relationships)
- Complete flexibility (companies only raise finance against invoices they choose to sell, no requirement to assign whole debtor book)
- No monthly minimum service fees, use the platform when you want, all fees are transactional
- Price transparency
- Extended scope (our buyer community is open to buy invoices not typically accepted by many factors and discounters)
- Personal guarantees are not required, all asset debentures are not required
- For young companies, no need to give up valuable equity to fund working capital