By Oliver Smith on Monday 21 December 2020
The lender still originated £342.4m in new lending during the year to November.
Businesses turned away from invoice financing in the first half of 2020, triggering a 55 per cent decline in volumes at sector-leader MarketFinance.
Despite the downturn, MarketFinance today announced a 3.4 per cent increase in its total lending for the first 11 months of 2020, supported by a considerable rise in its business loans and involvement in the government’s Coronavirus Business Interruption Loan Scheme (CBILS).
To date, the lender has originated £342.4m to UK businesses in the year to November, with its core invoice financing recovering in the second half of 2020 albeit with “some way to go before we see levels return to those of 2019”.
“We’re hopeful that this strong comeback signals we’re already past the worst of the situation,” said CEO Anil Stocker.
“We’re excited to carry on providing SMEs with the working capital they need to grow, innovate and build towards a successful future.”
MarketFinance also witnessed a more than doubling in size of the average companies applying for invoice financing during the year, with revenues of £2.1m up from its 2019 average of £1.3m.
Furthermore, the lender saw a 45 per cent fall in London businesses applying for invoice funding, with the most significant gains made by companies based in the Midlands.