MarketInvoice is a P2P (peer to peer) business lender. It is debt funding for businesses, who sell outstanding invoices to investors at a reduced rate to raise working capital. As an investor you make money when the invoice is paid.
Key facts and figures
Minimum investment: £50 000
Minimum term: Subject to terms of invoice purchase.
Requirements to invest: Must meet MarketInvoice criteria (high net worth individuals, sophisticated investors or institutional investors) and pass their checks.
Cumulative volume lent: £538,283,342
Type of borrowers: Business
Money lent in last 12 months: £285,225,118
P2P market share % over last 3 months according to Liberum AltFi Volume Index UK: 11.58%
Returns (according to MarketInvoice 6 May 2015)
Investors can earn gross annualised returns of over 10%. Actual returns may vary on the marketplace.
Fees accruing to investors are calculated on a daily rate. If invoices are paid either early or late, Investor fees will be adjusted accordingly. Investors are, however, compensated for a minimum of 30 days.
Apply online via the MarketInvoice website, then fill in necessary paperwork including anti money laundering checks.
Legal sign up, including paperwork and other necessary documents.
Funding your account is the final stage.
The process usually takes 1-2 weeks from start to finish.
Getting money on the platform
MarketInvoice does not take any deposits directly. Investor funds are placed in segregated client accounts held at Barclays Bank. Each Investor holds a dedicated client account.
Do investors get a choice in who or what they invest in?
Yes, once on the platform there is no requirement to deploy funds into any given auction and investors can take fractions of invoices as small as 1%.
Investing your money
Once funds are deposited, you set your preferred bidding parameters to diversify your risk. Their system places bids for you according to your preferences. When the invoice is settled they credit your client account.
There is an auto bid tool allowing investors who don’t have time to log on every time they want to trade to set their preferred bidding parameters and the platform will bid on their behalf.
MarketInvoice charges a percentage of any profits earned by investors, depending on the sum of funds held on the platform. It ranges from 20% to 30% of profits.
Monitoring your account
Once invoices are successfully bought, investors can monitor their progress from the online account. They can also see how much of their money is invested, and how much has not been deployed.
Understanding the risks
Since MarketInvoice commenced operations they have maintained an average principal loss rate of less than 0.10% in completed collection cases and in most cases recovered all the discount fees.
Uninvested funds can be withdrawn at any time.
Funds that have been invested in invoices cannot be redeemed until the invoice has paid out.
According to MarketInvoice the average product duration is 40 days.