MarketInvoice secures funding from Investec
MARKETINVOICE has unveiled its latest tie-up with a traditional financial services company.
The peer-to-peer invoice finance and business loans platform has formed a pilot with Investec to provide invoice finance deals and loans for business customers of the specialist bank and wealth manager.
Investec will provide £50m in the first year to fund the loans, MarketInvoice chief executive and co-founder Anil Stocker reportedly said in an interview.
MarketInvoice will manage the underwriting for Investec’s customers in the partnership, according to the bank’s website.
“We’re excited to be partnering up with an entrepreneurial team at a global bank such as Investec who share our vision to support ambitious growing UK businesses,” Anil Stocker, co-founder and of MarketInvoice, said.
“Our technology, coupled with their strong brand recognition, is what makes this collaboration so exciting.
“We believe there is much scope for traditional banks to partner with the latest fintech players, to better service the market. Open Banking should encourage and empower banks to deliver the highest innovation and customer service to their customers.”
The Shoreditch-headquartered firm announced a move into unsecured business loans last month, ranging between £10,000 and £100,000 over a 12-month term with no early repayment fees.
The firm has undergone a rebrand to coincide with the new product offering and has changed its orange and grey logo to a new, blue design, with the slogan ‘let’s make it happen’.
MarketInvoice, which has channelled more than £1.6bn to UK businesses through its invoice finance products, said it is looking to support a wider range of companies. Its business loans will be available to slightly younger firms – that have been trading for as little as six months – with a minimum turnover of £70,000.
Funds will be sent to approved businesses within 24 hours of application.
Partnerships between P2P platforms and financial services firms have become a popular in recent months.
Dutch insurer Aegon entered a four-year strategic partnership with Funding Circle in August to fund loans through the peer-to-peer platform.
The financial services group will back £160m of loans in the first 12 months of the deal, which will help approximately 2,600 UK businesses.