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Peer2Peer Finance News | September 23, 2019

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MarketInvoice secures £100m of institutional funding for larger invoice finance deals

MarketInvoice secures £100m of institutional funding for larger invoice finance deals
Marc Shoffman

MARKETINVOICE has secured more than £100m of fresh funding from two of its institutional investors.

The peer-to-peer business finance lender said on Monday that it has signed agreements with Portuguese bank Banco BNI Europa (BNI) and Germany’s Varengold Bank to channel £90m and £45m respectively on its platform.

Both banks have previously funded loans through MarketInvoice’s platform. Banco BNI Europa made an initial investment of £28.3m in 2016, followed up with an additional £45m in May 2017 and Varengold Bank invested £45m in September 2017.

MarketInvoice said that the new funding would be used to support larger invoice finance deals. The average value of invoices funded through the platform rose to £96,597 in 2017 from £56,495 in 2016.

“The volume and value of invoices we’re funding is higher than ever before,” said Anil Stocker (pictured), chief executive and co-founder of MarketInvoice.

“This is all down to businesses choosing diversity in funding source. Our growing institutional investor base on the platform has enabled us to support a broader pool of businesses.

“The invoice finance and asset-based lending sector is providing more finance to UK businesses than ever before. Funding volumes are up 13 per cent year on year and stand at just over £22bn. This is the highest figure ever.”

MarketInvoice’s institutional investors have cumulatively lent £1.1bn through the platform, which represents 52.3 per cent of the total funds advanced to UK businesses.

Read more: MarketInvoice expands into business loans market

“Our experience of working with MarketInvoice since 2016 has been exceptional,” said Pedro Coelho, executive chairman of BNI. “Our values are aligned on delivering innovative, quick and easy-to-use products that help growing businesses.

“Their ability to deliver fast and timely funding means that our investment is being well utilised. Furthermore, with the onset of Open Banking in the UK, we expect they will get funding to companies faster, who will in turn grow, hire more people and ultimately generate economic growth.”

Lukas Diehl, European vice president of marketplace banking at Varengold Bank, said MarketInvoice was well placed for businesses as Brexit looms.

“The MarketInvoice model has proven itself to be a dynamic marketplace servicing a vast swathe of businesses,” he said.

“Increasing our investment was a straightforward decision, in keeping with our ambition to become the bank of choice for the marketplace lending industry.

“In the year ahead, as Brexit looms, there is significant upside for MarketInvoice in all scenarios. The company is well placed to serve UK businesses providing export goods and services or those firms that are vary of the trading environment. Cashflow will be central to all businesses and MarketInvoice is well placed to service their funding needs.”

Earlier this month, MarketInvoice announced that it had reached £2bn of cumulative lending and expects to hit £3bn by the end of the year.