Lending

MarketInvoice Offers Non-Bank Capital to Small Businesses

Problem identification: For any startup, company cash flow is a matter of concern. The majority of a startup's potential clients ask for long-term payments with regard to their small suppliers. In other words, small suppliers incur costs and get paid after a time lag of a few months. The business bears different kinds of impact, like ability to expand, staff hiring, competitive advancement, etc.

Solution: Founded in 2011, MarketInvoice is a UK-based FinTech startup and is a disruptor of traditional bank finance. The company is an online peer-to-peer lending platform where companies can borrow against unpaid invoices. It is an online marketplace to fund working capital to SMEs; large institutional investors provide working capital to small businesses by acquiring their unpaid invoices. This way, small businesses get cash in a short span of time which in turn is risk averse. The company is one of a kind in the UK; it uses cutting-edge technology to bring investors and sellers together. The company provides commercial finance has no monthly fees and is flexible.

Since its launch, the company has lent $612 million and lending volumes are growing by an average of 30% each month.

The company's mission is to modernize the way in which SMEs finance their working capital and is taking steps to bring innovation to the banking industry.

Founders:

Founder Anil Stocker worked at Lehman Brothers before it collapsed while his Co-founder Ilya Kondrashov is a Goldman Sachs alumni.

Funding received:

$10.4 million in two rounds from three investors.

Most recent funding: 

$7.8 million venture on December 3, 2014.

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Source: MarketInvoice

Priti Thakur

Priti has keen interest in digital money and fintech startups . She completed her B-School education this year and likes to write about innovation with respect to digital payments.

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