MarketFinance expands B2B BNPL with £30m credit facility

Credit and payments company MarketFinance has secured a £30m credit facility to expand its B2B ‘buy now, pay later’ embedded finance offering to small businesses.

With the new cash, more online businesses will be able to offer flexible payment of up to 90 days to users.

The new agreement with Israeli technology investment group Viola will allow MarketFinance to provide credit up to £240m per year on rolling 45-90 day terms to UK-based businesses in pounds, US dollars and euros. 

“We believe embedded finance – seamlessly integrating authentication, multiple payment and pay-later options, and other value-added financial services at checkout – will bring significant benefits for SMEs over the coming years,” MarketFinance co-founder and CEO Anil Stocker said.

“In addition to receiving payment instantly, businesses tell us that offering more payment and credit options helps them stand out from the competition, and drive increased sales.” 

Stocker added that, with inflation driving costs up and traditional financial providers ‘struggling’ to fill the gap, frictionless solutions are “more needed than ever”.

To date, MarketFinance has made more than £45m available to more than 2,000 buyers via embedded finance.

Viola, which has more than $4.5bn assets under management globally, has previously invested a total of £75m with MarketFinance to support the company’s entry into the business loans segment.

Several companies are already using the embedded finance feature, including UK-based online diamond marketplace Nivoda, which serves buyers and sellers across the world.

“By working with MarketFinance, we are able to offer our customers 30 and 60 days credit which helps them to better serve their customers and in turn, sell more,” Nivoda co-founder and CEO David Sutton said.

“In a very high value item industry, MarketFinance has given companies the ability to tap credit exactly when they need it to maximise sales,” Sutton added.