Specific policy proposals submitted to Vince Cable through this report identifies greater use of [[invoice discounting]] and supply chain finance to allow SMEs to unlock cash efficiently from [[Late payment to small businesses|outstanding payments]] from large corporates.
Here at MarketInvoice we welcome the report and agree with its findings. Since launching a year ago, we are serving a rapidly increasing number of growth businesses with flexible [[Working capital finance|working capital]], through our revolutionary model for [[invoice auction|auction-based]] invoice finance and supply chain finance. Monthly auction volume has increased 100 fold since our launch in February 2011. This demand for our funding platform shows that a significant proportion of British business want to grow and create jobs, but are not being satisfied by the current range of traditional banking products.
The biggest barrier for small business owners embracing alternatives is simply awareness. There is a clear role for Government in helping to educate business owners that there are now emerging alternatives right across the financing spectrum (from equity to debt, to [[Working capital finance|working capital]] and invoice finance).
MarketInvoice are founders of the Next Generation Finance Consortium (NGFC) which is an industry movement comprised of alternative funding providers that aims to help businesses understand the evolving financial landscape here in the UK. The NGFC held its launch event to a packed auditorium of over 200 business owners at the Cass Business School on March 8th and will be holding regular events throughout the year. See the website for more information.
Quote from Anil Stocker, co-founder of MarketInvoice
“I firmly believe that we will see a revolution in the provision of small business funding and that the Breedon Report this morning will bring alternative finance into the mainstream. There is no silver bullet to solve the SME liquidity crunch, but the report is useful in identifying models such as invoice finance and supply chain finance as a good starting point. This is exactly why we started MarketInvoice; we wanted to disrupt the current old-fashioned bank finance products.”