This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
September 2, 2013 /PRNewswire/ --
'Initiative will see circa. £40m advanced to SMEs over a 12 month period'
MARKETINVOICE, the online funding platform for SMEs seeking access to working capital, is delighted to announce the commencement of the UK Government's investment through its service.
As part of the Government's Business Finance Partnership, the Department for Business Innovation and Skills ('BIS') is committing £5m as an Investor Member on
MarketInvoice, with expected yearly returns of approximately 10-12%. With funds on MarketInvoice recycled every 45 days, this £5m commitment will equate to approximately £40m in investment to SMEs over the next year.
Already, more than 10 businesses across sectors such as fashion retail, marketing, software and telecommunications have benefited from the Government funds now flowing through MarketInvoice directly to SMEs.
MarketInvoice enables SMEs to sell their long-dated invoices to a pool of investors, who in return for advancing most of the funds upfront, take a small discount fee in return.
Since launch in
February 2011, MarketInvoice has channelled more than £65m to UK SMEs - £42m of which was in the last 12 months alone, with more than £6m now going through the platform each month. Unlike traditional invoice discounting facilities, businesses using MarketInvoice are not tied into long exclusive contracts, nor are they required to sell their entire sales ledger as part of the agreement. SMEs using MarketInvoice can sell their invoices selectively, as and when they choose, with no personal guarantees required.
The Business Finance Partnership was setup to boost business funding via non-bank lending channels. As part of the initiative, approximately £87m has been earmarked for investment through non-traditional channels of funding, such as
Commenting on today's news, MarketInvoice Co-Founder Anil Stocker said: