MarketInvoice Advances £20 Million Worth of Invoices to Small Businesses Through its Online Platform |
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By: Dev Posted: 2012-07-03 01:57:55 |
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LONDON, July 3, 2012 -- MarketInvoice, the UK and Europe's first and only working online invoice finance marketplace, announced that this month it has processed over £20 million of blue-chip invoices auctioned by small businesses since it started trading in February 2011.
"Over the last few months we have seen a rapid growth in the number of small businesses opting to use alternative financing solutions to help fund their enterprises," says Anil Stocker, co-founder and director of MarketInvoice. "We have over 100 businesses signed up to our platform and this latest milestone not only highlights SMEs' increasing need for alternative means of support to help their businesses grow, but it is also encouraging to see the faith and positive feedback that our clients have shown in our online marketplace." MarketInvoice's clients range from UK limited companies turning over on average between £250,000 and £50 million. Members wanting to turn invoices into working capital cover a range of diverse industries from construction and engineering, imports and exports, to recruitment and consultancy. They all recognise the advantages of keeping control of their cash flow particularly when debtors are extending payment terms in this troubling economic climate. "I wanted funds without all the guarantors needed when applying for a bank loan," said Jessica Witenberg, founder of handbag & accessory making business Jessnic & Co. "And I certainly didn't want a loan hanging over my head during tough economic times." A fervent user of MarketInvoice, Witenberg says the flexibility offered by the invoice factoring marketplace is exactly what small business owner's want in the current economic climate, "with banks there are hidden fees and additional costs that pop up out of nowhere." "The current economic climate means it is very difficult for SMEs to access bank finance," says Stocker. Initiatives introduced by the Government to help facilitate bank lending to businesses including Project Merlin, National Loan Guarantee Scheme and the Enterprise Finance Guarantee have been slightly underwhelming in impact. The brand new funding for lending plan set out by the Treasury and financed by the Bank of England, is a step in the right direction, however the private sector is where the most change can happen. "The Government must now champion credible alternatives such as ours in order to facilitate access to capital for UK SMEs. A UK economic recovery depends on these companies having the confidence and capital to create new jobs and stimulate growth," expounds Stocker. The largest source of working capital for UK SMEs is often tied up in outstanding invoices with payment terms from blue-chip debtors extending between 30 and 120 days. MarketInvoice is an innovative provider of short-term invoice discounting for small and medium companies. It provides a cloud-based online marketplace where companies can selectively sell their invoices issued to large debtors to receive cash upfront. Global institutional investors compete among themselves in real time to bid on these invoices and advance cash, enabling companies to grow and cover costs. The MarketInvoice product brings together an international network of investors with high growth small and medium sized enterprises in search of working capital and an alternative funding option. |
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