Market Invoice [Profile]

Startup Profiles

MarketInvoice is a business finance provider, which allows businesses to sell their unpaid invoices with long payment terms, to fund business growth.

MarketInvoice is a peer-to-peer platform allowing:

  • eligible companies(1) – “Companies” – to finance their unpaid invoices or outstanding contracts (recurring contracts, licenses or retainers) to unlock a discounted value in a short amount of time.
  • eligible investors(2) – “Investors” – to access a pool of invoice-backed fixed income investment (zero coupon), committing capital according to a customizable eligibility profile. (i.e. matching Investors’ capital with Invoices/Contracts to finance according to their preference.)

(1) Eligible companies that can apply to the platform have to be a limited or LLP company based in the UK or Ireland, have a min £100,000+ turnover, sell goods or services to other businesses on terms and have at least 6 months of trading history

(2) Eligible investors will be either sophisticated investors, High net worth individuals or Companies or institutions. Minimum investment amount £50k

Does not provide complementary or alternative financial products to existing business costumers (e.g. loan, receivable insurance,…), No coverage outside of the UK and Ireland (e.g. US market),…

Proprietary online-native invoice/contracts pricing model tailored for SMEs with quicker than industry average turnaround and with a pay as you go fee model.

  • 24h turnaround versus 30 to 120 days for larger financial intuitions
  • Pre-agreed & per invoice fee versus subscription/credit line models

Integration with existing SMEs leading accounting software

  • use trading history to get an embedded pricing for receivables financing

Attractive risk exposure for investors to a pool of fixed-income-like investment

  • AVG 40 days financing, 2% default, 0.27% principal loss, 5-8% return guidance

Customizable risk profile for Investors

  • “Autobid” platform allow investors to select the invoices eligible for funding
  • APIs allow look through of the Investors portfolio exposures

  • Listing fees (£15) and processing fees paid upfront (deducted from the Advance rate)
  • Servicing fees (from 30% if <200k, 25% between 200k and 2m and 20% for >2m of Investors funds) deducted from the Discount Fee paid to Investors by the Companies upon invoice settlement.

Example:
Company with 1m Revenue, 100k 30 days Invoice, Investors <200k only:
Listing Fee (0.015%) + Processing fee (1.25%) + Servicing Fee (0.3*0.47%) = 1.41% of Invoice FV

  • Discounted value: Advance rate * Face value of the Invoice/Contract.
  • Advance Rate: % of the face value of the invoice provided to Companies if eligible as a function of the company & invoice specifics.
  • Discount fee: daily interest used as a basis for the remuneration of Investors financing the Invoice/Contract computed as a function of the risk assessment of the company & invoice.


Links/Sources:

 

Comments are closed.