MarketInvoice signs agreement with Varengold Bank AG providing £45m to help UK businesses

MarketInvoice, a business finance company, has signed an agreement with Varengold Bank AG to provide £45m funding on its invoice finance platform, which will help working capital solutions for UK businesses.

Via MarketInvoice, sums advanced to such businesses have increased more than four-fold since 2014 from £27.8m to £116.3m this year. Cumulative funding from institutions stands at £296.2m, representing a quarter - or 26 per cent - of the total funds advanced.

MarketInvoice has reached a landmark milestone of providing £1.5bn funding to UK businesses, and the first £1bn was achieved after five years of trading in December 2016. In August this year, £74.1m worth of invoices were funded to businesses.

Dan Walker, head of london office at Varengold Bank AG, commented: “We have been looking at the fintech sector for some time. MarketInvoice and its peer-to-peer invoice finance platform presented a fitting opportunity for us.

“In particular, we were attracted by their products, approach to risk management and ambition for growth.”

Recent increase in interest from global institutions and rise in funding levels has come since the launch of MarketInvoice Pro, which mirrors the uptake of the product by UK businesses. MarketInvoice Pro is a confidential invoice discounting facility, launched earlier this year, and offers businesses a funding line against their outstanding invoices.

The co-founder and CEO of MarketInvoice, Anil Stocker, added: “Institutions have played a significant role in our growth story and over the past few years. This commitment from Varengold is further proof our ability to provide finance to high growth businesses across the country… We’re excited by their support of our mission.

“We look forward to building on this relationship as we scale into larger funding lines through our new MarketInvoice Pro product. I’m sure we’ll see many more examples of this type of product collaboration in the coming months.”

The company’s main ambition is to extend its reach in being able to support a wider range of businesses, from startups to larger businesses.

Stocker continued: “Companies have been able to access funding from £10k to £3m against invoices, to fund their working capital, which is vital to the success of small companies dealing with growing orders and long payment terms.

“This funding has supported fast-growing companies to launch new products, hire more staff, and export to new markets.”