11 UK-Based Working Capital Financing FinTechs to Watch out For

In May 2019, SoftBank announced $800 million investment in Greensill, a UK-based working capital financing FinTech company which marked its second significant investment in the UK this year. One could be curious about what Greensill-like alternative finance players do to become so attractive for major investors such as SoftBank.

Colin Fan, Managing Partner at SoftBank Investment Advisers, believes that Greensill is a strong market leader in working capital finance and has played a pioneering role in the technological revolution that has transformed the industry. Through this new partnership, SoftBank sees immense opportunity to introduce working capital finance to a new generation of businesses around the world.

According to Greensill’s estimates, the untapped global market for working capital finance stands at $55 trillion, which makes it a niche business with enormous opportunities. Earlier this year, London-based MarketInvoice also raised $33 billion in funding while iwoca, another FinTech, secured ~$194 million in funding. Since UK-based working capital providers are on the rise, we took a look at 11 exciting FinTech players from the UK:

  1. Founded in 2011, Greensill is an alternative lender that provides working capital finance for SMEs globally. It has facilitated payments to 1.7 million suppliers across 60 countries. In May 2019, SoftBank Vision Fund announced to invest $800 million into Greensill. Greensill aims to use the funds to accelerate its expansion in new markets including Brazil, China, and India markets and develop new technologies.

  2. Founded in 2010, MarketInvoice is a peer-to-peer lender for businesses based on outstanding invoices. It allows businesses to selectively sell the invoices of large business customers to raise flexible working capital. Since its inception, it has financed invoices and business loans worth more than ~$2.9 billion.

  3. Founded in 2011, iwoca combines the growth of e-commerce, scarcity of credit and the emergence of innovative data sources to create an exciting investment opportunity. The company provides working capital of up to £50,000 to successful merchants by using their feedback scores, sales history, and social behavior to assess their credit profile. Also, it specializes in offering small business loans quicker than incumbent banks. The company has been named as one of the 10 winners of the Open Up Challenge with a prize of £100,000 per winner (Dec. 2017).

  4. Founded in 2014, BillFront is an online lending platform that provides working capital solutions for fast-growing companies such as app developers, app publishers, and ad networks. BillFront offers faster and easier access to cash for developers by paying out the revenues they generate via advertising networks and app stores on a weekly basis. BillFront is the intelligent way to manage cash flow and to fuel an app developer’s business.

  5. Founded in 2013, Growth Street provides fast and flexible business finance to support cash flow management, working capital, and fund growth.

  6. Founded in 2012, Boost Capital provides financing solutions such as working capital loans to SMEs. It helps businesses to leverage their future sales to access the unsecured financing that they need to invest in new equipment, inventory, marketing, remodeling, expansion, and other business demands.

  7. Founded in 2016, Halotrade leverages blockchain technology which provides access to working capital through supply chain finance. The solution offers a multi-user network to incentivize suppliers to open up their systems and practices, which is accessible through user interfaces and APIs. It enables financing to ethical producers by using institutional financing platforms.

  8. Founded in 2013, Investly is an online marketplace that provides financing solutions for UK-based businesses. It helps businesses to raise working capital from global investors.

  9. Founded in 2017, Globacap leverages blockchain, automation, and machine learning to offer a digital platform, which enables SMEs to raise working capital in the form of cryptocurrencies. The platform is currently working with regulators to create two standardized blockchain securities, i.e., debt and equity.

  10. Founded in 2014, FundingXchange offers one-click funding applications to banks, alternative lenders, and specialist financing providers, and enables SMEs to raise working capital for their business operations and growth plans. It works with businesses of any size and leverages data available from open banking, alternative lenders, and other sources to offer more than 80 funding solutions.

  11. Founded in 2012, Capital on Tap is a business financing startup that provides working capital for small-and-medium-sized businesses. The online lending platform can offer small businesses with loans up to £50,000.