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MarketInvoice Raises 10 Million To Change Invoice Finance

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MarketInvoice has recently announced $10 Million in new funding (£6 Million) to change invoice finance. UK based MarketInvoice is Europe’s first and largest peer-to-peer finance provider for businesses with outstanding invoices. Below is our interview with Paul Crayston from MarketInvoice:


Q: MarketInvoice is changing invoice finance, tell us something more about the company?

A: We want to be the one-stop destination for businesses that need funding for their cashflow. This is a really under-served market, banks have all but stopped offering overdrafts, and other products they offer are expensive and laborious to set up. With MarketInvoice businesses can apply online in 15 mins and get funding up to £5m on the same day. Right now our core product is in invoice finance – where a business uploads outstanding invoices to be bought out by investors – but we have lots of new products in the pipeline. To date we’ve funded nearly £500m to UK businesses.

marketinvoice Related: With $40 Million In New Funding WePay Plans To Expand Its Services Globally

Q: How it works? What are the biggest benefits for the users?

A: You complete a short, online application form and, if accepted, you are then free to upload invoices onto our platform. Investors buy up to 90% of the invoice and the money is advanced to you straight away – less a small MarketInvoice fee. When your customer pays the invoice you get the remaining 10% less a small fee for the investors. Typically you’ll pay between 1.5% and 2.5% of the invoice face value in fees; so where a business is making a 20 – 60% margin on the deal, it’s well worth it to get the money up front. Businesses have used MarketInvoice to hire new staff, launch new products and expand into new markets. It acts like rocket fuel for growing businesses.


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Q: You’ve recently announced £6 million in new funding, what are your plans?

A: We’re looking primarily at three things:
1 – launching new products for borrowers, including Licence Finance, where businesses access funds against subscriptions and licence agreements; and supplier finance, where businesses access funds to complete an order before invoicing.
2 – allowing retail investors to fund the growth of small businesses. Currently MarketInvoice operates a £50,000 minimum investment.
3 – investment in smart marketing to raise brand awareness.

Q: The UK Government is buying invoices through MarketInvoice, tell us something more?

A: The UK Government – through the British Business Bank – has been investing in small businesses across the MarketInvoice platform since August 2013. To date they’ve funded £60m into UK small businesses. They do this for two reasons; firstly it helps meet their objective of fuelling the growth of great small businesses, and secondly they earn a healthy return on their investment.

marketinvoice2 Related: With $40 Million In New Funding WePay Plans To Expand Its Services Globally

Q: What can we expect from you in the future?

A: We’re an innovative company, we believe in finding new ways to help businesses fund their cashflow. We don’t want to just copy what banks do and do it better – we want to reinvent this part of financial services.

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