MarketInvoice, a firm which helps firms generate finance by selling their invoices to investors, has reached a milestone of £50m of arranged lending in its first two years of operation.
Invoice finance allows you to make use of money tied up in invoices, giving you greater flexibility and a more liquid cashflow.
In 2011 MarketInvoice created an “eBay for invoice finance”, allowing firms to list their invoices and investors to bid for them.
The winning bidders pay you an advance on the invoice which you then repay, along with charges, once the invoice has been paid.
In the last 12 months, MarketInvoice has brought £35m worth of finance to small businesses. Since it launched two years ago, more than 250 firms have participated in over 1,000 auctions.
Co-founder Anil Stocker says that the popularity of MarketInvoice demonstrates the appetite of small and medium firms for finance.
“We are excited to have hit such an incredible milestone. We are aiming to hit the next milestone faster and look forward to working with more companies in the future,” he says.
Back in March, MarketInvoice received £5m in government funding in order to increase lending to small businesses.