Banks up MarketInvoice investments as lending grows

By Daniel Lanyon on Monday 26 March 2018

Alternative Lending

More institutional capital is funding larger invoice finance deals.

MarketInvoice has signed new agreements with Portuguese bank Banco BNI Europa and German bank Varengold Bank AG to lend £90m and £45m respectively through its platform.

It’s not the first investments the two institutions have made into the lending platform, which enables businesses to secure business loans and invoice finance.

Banco BNI Europa’s initial investment of £28.3m in 2016 was followed up with an additional £45m in May 2017. Today, that capital deployment has doubled by adding a further £90m to the platform. Varengold Bank AG added £45m in September 2017 and has, today, added a further £45m.

Other institutional investors include the British Business Bank, UK local authorities, global family offices and sophisticated and HNW investors. 

 Anil Stocker, CEO and co-founder of MarketInvoice, says the volume and value of invoices being funded is increasing.

“Our growing institutional investor base on the platform has enabled us to support a broader pool of businesses. The invoice finance and asset-based lending sector is providing more finance to UK businesses than ever before. Funding volumes are up 13 per cent year on year and stand at just over £22bn. This is the highest figure ever,” Stocker said.

In 2017, MarketInvoice almost doubled the average annual amount advanced to UK businesses - from £606,000 in 2016 to £1.14m in 2017. Also, the average value of invoices funded was £96,597, up from £56,495 in the same period. 

Pedro Coelho, executive chairman of Banco BNI Europa says the partnership has been successful over the past two years and that the advent of Open Banking should increase demand for its services.

“With the onset of Open Banking in the UK, we expect they will get funding to companies faster, who will in turn grow, hire more people and ultimately generate economic growth,” he said.

MarketInvoice last week reached the milestone of funding £2bn worth of invoices and business loans to UK companies. 

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