MarketInvoice, the UK and Europe’s first online [[invoice discounting|invoice finance]] marketplace, has today announced it has traded over £30m of invoices, with £10m processed in the last three months alone as more and more businesses look to them for an innovative finance solution. In the same week that MarketInvoice was named ‘Innovation of the Year’ at the City A.M. Awards, the company reached the milestone it claims represents a ‘tipping point in the approach of businesses to new ways of managing finance’.
‘Changing mindset of British business’
“It was only in July that we passed the £20 million invoice mark, and the fact that it only took three months to get to £30 million reflects a significant shift in momentum for us and in the mindset of British businesses. We now have over 140 organisations signed up to our platform, all using MarketInvoice to get access to the working capital they need to grow their businesses,” says Anil Stocker, co-founder and director of MarketInvoice.
“People want more flexibility than banks provide, and MarketInvoice helps manage finance and cash flow without tying business-owners into potentially onerous finance agreements.”
Innovation of the Year Award
The City A.M. Awards celebrate London’s financial and business community and its most successful individuals and firms. MarketInvoice was named winner in the ‘Innovation of the Year’ category, beating household names on the shortlist such as Spotify, with judges stating, “the innovation has made waves in the lucrative but somewhat hidebound financial services sector.”
Anil Stocker continued:
“Winning a City A.M. award is recognition of the importance of what we are doing. Being named alongside companies like Spotify is a great achievement for us and a fantastic source of motivation to keep improving and innovating in 2013 and beyond.”
MarketInvoice’s clients range from UK limited companies with a turnover between £250,000 and £50 million. Members use the service to turn unpaid invoices into working capital, coming from a broad spectrum of industries including recruitment, retail, technology, design and marketing.
Supply Chain Finance
MarketInvoice has also been pioneering a Supply-Chain Finance initiative, an area of finance, which became a talking-point yesterday when David Cameron announced a government-backed SCF scheme.
Since rolling out a pilot scheme in the construction sector from December 2011, MarketInvoice’s SCF product has provided over £5 million of funding. The initiative allows a mid-sized corporate to accelerate invoice payments to eligible SME suppliers for work completed, boosting their access to capital.
Anil Stocker believes that the Government is right to recognize SCF as a great way to approach the problems UK SMEs have with working capital and late payment: “We moved to providing a specific Supply-Chain Finance product because we realised how many smaller businesses were struggling for capital despite having full order books. There’s pressure on businesses of all sizes in the current economy, and supply-chains need more support than they did five years ago. There are pools of capital stuck at various stages of supply chains; this system frees up capital to allow things to proceed more smoothly, to the benefit of all parties involved.”