The government has announced it will invest in SMEs through MarketInvoice, a Real Business Future 50 alumnus.In total, the government’s Business Finance Partnership initiative will see around £40m advanced to SMEs over the next 12 months. With funds on MarketInvoice recycled every 45 days, the government’s £5m commitment to the invoice finance company will equate to approximately £40m worth of investment to SMEs over the next year.
MarketInvoice enables SMEs to sell their long-dated invoices to a pool of investors, who in return for advancing most of the funds upfront, take a small discount fee in return.
Since it launched in February 2011, MarketInvoice has channelled more than ?65m to UK SMEs, £42m of which was in the last 12 months alone. More than ?6m now goes through the platform each month.
“Delighted and honoured”
“Everyone at MarketInvoice is both delighted and honoured to have been selected to participate in the Business Finance Partnership,” says MarketInvoice co-founder Anil Stocker.
“We hear every day how UK SMEs are finding it increasingly difficult to access critical working capital and therefore the government’s investment via our platform is both a hugely positive and timely development.
“This investment is going straight into the real economy; funding businesses that are hiring, growing, exporting and forging ahead with new products and services across a wide range of sectors. Despite the uncertain economic climate, SMEs using our service remain determined to push ahead, and the Government’s funding will go some way to helping them achieve this.”
Since the official launch of the government’s investment programme, more than 10 businesses across sectors such as fashion retail, marketing, software and telecommunications have benefited from the funds now flowing through MarketInvoice directly to SMEs.
The Business Finance Partnership was setup to boost business funding via non-bank lending channels. As part of the initiative, approximately ?87m has been earmarked for investment through non-traditional channels of funding.
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