Anil Stocker, co-founder of MarketInvoice:
“A solution to the issue of squeezed funding for small businesses has emerged in the form of alternative finance, which is making up the shortfall by delivering business funding seamlessly via the internet. It’s cheaper than traditional providers because it connects borrowers directly with lenders, skipping out the bureaucracy of banks.”
MarketInvoice, an alternative online finance provider, has helped hundreds of SMEs overcome funding gaps by allowing them to raise funds against invoices from their large corporate customers whenever they need to on an online platform, with no long-term contracts or obligations to use the service, and cash arriving hours after a request is submitted. It essentially offers a whole new model of invoice finance.
Alternative finance provides all kinds of ways to access funds, control cash flow and better manage costs, whether in the form of long-term loans, equity investment or next-generation invoice finance. SMEs are increasingly frequently overcoming financial bottlenecks through alternative finance. The benefits should appeal to small firms particularly – flexibility, cost, and speed of funding – exactly the qualities small firms say they look for in their finance.
Working capital raised through MarketInvoice has several advantages above other forms of finance like traditional invoice finance or overdrafts. MarketInvoice offers a flexible, affordable approach, where you only sell the invoices you want to sell and there are no on-going fees or service charges, unlike traditional factoring, which has long lock-in periods. Unlike an overdraft, there is no requirement for a personal guarantee, nor does the amount you can borrow change unexpectedly.
The MarketInvoice process is very simple and easy – you just fill out an online application form that takes around 10-15 minutes, filling in some details about your company and uploading some basic documents. Then when you are ready to sell an invoice and get upfront funding, you simply send through the invoice and purchase order and cash can be advanced against it within 24 hours.
Small companies using MarketInvoice get cheaper access to funds because the intermediaries are removed, so institutional and high-net-worth investors directly invest invoices through the platform, reducing fees all round. Because the buyers are investing into an asset class that they otherwise wouldn’t have had access to, both SMEs and the investors get better options as borrowers and lenders respectively.
Through MarketInvoice, invoice finance has become not only usable, but now also one of the most flexible options for funding the working capital needs of growing businesses. Enabled by technology, small businesses can now get the finance they need to get Britain growing.
For more information visit: www.marketinvoice.com
To see a detailed model of how the process works, visit: marketinvoice.com/how-it-works