Invoice finance specialist expands product set with 12-month term loans.
Months after launching the first of its longer-term products, MarketInvoice has gone a step further: branching into the small business loans market.
The fintech firm, which has to date specialised in invoice finance solutions, has launched an unsecured business loan product, ranging from £10k-£100k in size over a 12-month term, with no early repayment fees.
MarketInvoice launched its Pro product in February of this year, allowing small businesses to access open funding lines secured against their outstanding invoices. The Pro product offered a long-term funding solution for MarketInvoice customers, meaning they could in effect “graduate” from the platform’s flagship selective invoice finance product as they grew. But the graduation effect will not be such a factor with the new business loans. MarketInvoice expects to attract many first-time users through its term loans, which as a funding type is perhaps the best-known of business funding solutions.
The target borrower for the new product will have a minimum turnover of £70k and will have been trading for at least six months. In other words, they can reasonably be described as startups. The business loans, then, represent new ground for MarketInvoice not only in terms of product, but also in terms of borrower type. Users of its invoice finance solutions have to be able to demonstrate at least one year of filed accounts with Companies House. Users of its new business loans may never have filed accounts.
MarketInvoice expects to be able to approve prospective borrowers for its new business loans within 24 hours of application. Speaking at a launch event earlier this week, Anil Stocker, founder and CEO of the platform, said that the advent of Open Banking in 2018 could quicken the pace of approvals to “seconds”.
“Entering the business loans space, a £35b annual market in the UK alone, was a natural move for us,” said Stocker. “Our experience in underwriting business credit, coupled with our technology and people means we are well-placed to serve this demand.”
The business loan product has been in beta testing for three months, during which time over £1m has been lent. The product officially goes live November 1st.
In tandem to the new launch, MarketInvoice has unveiled a new brand, which it says represents its evolution into a “business finance company”. Its logo and website have been updated to reflect the messaging. The firm will also be conducting a marketing campaign over the coming month, in railway stations, on the Tube and on the radio, with the phrase “let’s make it happen” at its heart.
“To coincide with this product launch, our new brand and marketing campaign this month will help raise awareness amongst British businesses that MarketInvoice is here to help,” said Stocker.
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