MarketInvoice scoops £50k from West Oxfordshire District Council to help fund local businesses.
MarketInvoice has forged a new partnership with the West Oxfordshire District Council to free up liquidity for local small businesses. The Council is only investing £50k, but MarketInvoice sources suggest that this will be the first of a number of regional partnerships for the platform – following the Funding Circle blueprint for UK expansion.
West Oxfordshire District Council will invest alongside a range of other investors on the MarketInvoice platform, allowing local small businesses to free up liquidity against their unpaid invoices. Using MarketInvoice, SME owners can factor invoices on a selective basis, as opposed to having to factor the entirety of their accounts receivable.
Councillor Warwick Robinson, cabinet member for economic development, said that a lack of working capital has been “a major growth barrier” for firms in recent times. “This innovative scheme means they do not have to spend time and resources chasing unpaid invoices,” he said. “Instead, they have cash up front to improve their liquidity and help with expansion.”
West Oxfordshire District Council will invest on the MarketInvoice platform alongside a number of sophisticated individual investors and institutions, including Fiduciam, which committed to purchasing £50m of invoices through the platform on an annual basis in March 2015. The British Business Bank and Greater Manchester Combined Authority have also channeled funding through the platform, with the latter committing £16m in November 2014.
“We’re delighted to be supporting local businesses in West Oxfordshire,” said Anil Stocker, Chief Executive & Co-founder of MarketInvoice. “By deploying funds on our platform, the Council is able to invest directly into the local economy, boosting businesses and creating jobs across the District.”