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European Bank to invest £45m via UK marketplace lender




By Ryan Weeks on 15th May 2017


MarketInvoice seals major investment deal, new long-term product driving institutional interest.

 

MarketInvoice, a leading UK fintech firm in the invoice finance space, has secured a £45m funding deal with Banco BNI Europa (BNI). The European bank has agreed to provide £45m in funding annually, thus becoming the first bank to deploy money through the platform.

 

The news comes after the completion of a trial investment of £28.3m in 2016. BNI first implemented a strategy for investing via fintech platforms in 2015.

 

“We are proactively working with fintech businesses globally that prescribe to our vision of providing low-cost, innovative products with exceptional customer service,” said Pedro Coelho, executive chairman of Banco BNI Europa. “MarketInvoice has consistently delivered these values over the years.”

 

MarketInvoice has funded over £1.2bn of invoices to date. Its loans are funded by a mix of institutional and high net worth investors. The amount of money advanced to UK SMEs by institutions through the platform has almost doubled over the last three years, from £96.1m to £176.2m. The firm has also stated that global institutional investor interest in the platform has increased 34 per cent since Brexit, while interest from UK institutions has remained even.

 

One factor that might be driving investor interest are the longer terms that are now on offer to MarketInvoice customers. The firm launched its first longer term product (MarketInvoice Pro) in February, an open funding line which is secured against outstanding invoices.

 

The growth of this product should substantially increase deployment capacity for investors. Previously, an annual funding commitment of £10m would in reality equate to an investment of £1m or less, due to the short-term nature of MarketInvoice’s flagship selective invoice finance product. But as terms are dragged up by the Pro offering, so too will deployment capacity increase.

 

MarketInvoice co-founder and CEO Anil Stocker (pictured) said that BNI had shown foresight in executing its digital strategy by collaborating with the European peer-to-peer industry.

 

“There are strong synergies between us as a fintech platform and BNI as a digital-only bank,” he said.

 

Coelho echoed those sentiments, saying: “It is inevitable that banks will work more collaboratively with fintech businesses. I am firm believer of this and see much scope in the industry.”

 

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