MarketInvoice is ahead of the fintech lending pack in terms of returns generated for investors. According to AltFi Data, the platform boasts a 3-year net return of 30.2 per cent, top among the marketplace lenders tracked by the company.
The platform has also generated an annualised net return in 2017 (up to Q3 2017) of 10 per cent. These numbers are calculated using a methodology that assumes an investor invests an equal amount of money in each monthly cohort of loan origination, and that this investment is perfectly diversified across all loans originated in each period.
AltFi Data’s tools also calculate performance metrics (to a consistent standard) for lending platforms Zopa,Funding Circle,RateSetter,Lendix,Prosper and Assetz Capital.
“As MarketInvoice matures as a platform, we continue to make significant investments in our risk function that include further strengthening our risk methodology, credit models and processes. These have been the primary driver of the return outperformance at MarketInvoice,” explained Aman Mehra, head of investor development at MarketInvoice.
“Despite the political and financial uncertainty this year, the short-dated and secured nature of our invoice financing product has allowed us to be responsive and closely monitor our credit performance, resulting in greater than expected returns for our investor base. Additionally, our net returns over a three-year period have outperformed the AltFi UK Index, reinforcing the fact that invoice financing is a long-term viable asset class to invest in.”
As Mehra suggests, MarketInvoice’s performance to date has largely been driven by invoice finance. Going forward, the performance of its business loans, which were launched in November, will also play an important factor.
Though not a P2P lender in the strict sense, MarketInvoice loans can nevertheless be invested in by high net worth individuals and sophisticated investors, as well as by a range of institutions. In the past six months alone, the platform has secured funding commitments from banks Banco BNI Europa, Varengold Bank AG and Investec – each worth around £50m.
