UK SMEs access £100m of funding through British Business Bank partner MarketInvoice

Press release 16 December 2013

MARKETINVOICE, the online platform where SMEs can raise working capital by selling their invoices to investors, has today announced that it has now facilitated £100m in funding since launch.

In the past year, volume through MarketInvoice has grown 20% month-on-month, with October being the first time more than £10 million was traded through the platform in a single month. £65 million has been traded in 2013 alone, following £36 million traded in 2012 and £4 million traded in 2011.

Since launch in February 2011, SMEs from across the UK have raised funding via thousands of transactions on the MarketInvoice website, with the biggest single invoice sold being worth £1 million. The SMEs using MarketInvoice come from all sectors and include Facebook app developers, structural engineers and cupcake makers. The average size of the invoices sold is £80,000 and 100% of invoices listed for sale on MarketInvoice have been funded in full – many of them within seconds of going live.

In August 2013, the UK Government-backed British Business Bank began investing in SME invoices through MarketInvoice as part of its Business Finance Partnership, which helps to support new and alternative lending models for smaller businesses. This investment will equate to approximately £40 million in SME funding put through MarketInvoice over a 12 month period.

Reaching this important £100 million milestone ahead of schedule is testament to the strong demand for our funding product, the quality of our service, and the hard work of our entire team. Monthly funding has quintupled during 2013, and I feel that this is only the beginning of what we can achieve as a disruptive financial technology platform. There’s still much to do though. Businesses in this country are still struggling to access the finance they need to launch new products, hire more people and enter new markets. We started MarketInvoice to provide a fast and flexible alternative to an acute problem faced by hundreds of thousands of SMEs across the UK. With £100 million of funding now closed, our sights are firmly set on supporting many more ambitious, high-growth UK SMEs in the months and years ahead. Anil Stocker MarketInvoice Co-Founder
It is important that smaller businesses have access to a good range of finance providers, including new and innovative providers like MarketInvoice, that can help with specific financing needs. A key element of the British Business Bank’s purpose is to encourage competition and greater diversity in finance markets for smaller business. Keith Morgan CEO of the British Business Bank

Further Information

Notes to editors

About MarketInvoice

MarketInvoice is Europe’s first online funding platform allowing SMEs to selectively sell their long-dated invoices to a pool of global investors. Businesses sign up to MarketInvoice and then list for-sale invoices due to blue-chip debtors with payment terms of between 30-120 days. Investors buy the invoices instantly, advancing cash to SMEs within 24 hours. Investors make their returns by charging SMEs a small discount fee on the invoice sold of approximately 1%, while MarketInvoice charges Sellers a one off, up front processing fee of, on average, 1.5% of the invoice sold.

MarketInvoice allows SMEs to post invoices for sale as and when they choose, with no lock in periods, service charges or personal guarantees required. Since launching in 2011, MarketInvoice has channelled over £100 million in funding to SMEs via thousands of transactions on its platform. Since August, the UK Government-backed British Business Bank has been investing in SME invoices through MarketInvoice and will invest circa. £40 million through the platform over the course of a year.

About the British Business Bank

The British Business Bank is being set up to create more effective and efficient finance markets for smaller businesses in the UK. It is a key element of the Government’s Industrial Strategy, and its programmes are already contributing to making the UK the best place in Europe to start, grow and finance a business.

The British Business Bank programme is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. Once HM Government has received European Commission State aid clearance, which is expected in 2014, this programme will be transferred in its entirety to the British Business Bank plc, which will operate as a Government-owned financial institution.

About the Business Finance Partnership

The Business Finance Partnership, which has invested a total of £87 million through 7 lenders, is a British Business Bank solution to help diversify the available sources of finance for smaller businesses. The British Business Bank’s £300 million Investment Programme, which builds on the BFP’s success, is helping stimulate at least a further £300 million of investment from the private sector, encouraging new lenders in to the market and the growth of smaller lenders.