Barclays acquires stake in London fintech business MarketInvoice

Barclays has acquired a significant minority stake in fintech business MarketInvoice, Europe’s largest online invoice financing platform, in a deal that “is set to transform the way SMEs in the UK manage cash flow and accelerate growth.”

The new partnership is a key part of Barclays’ plans to invest in new business models for growth, and MarketInvoice’s aim to broaden its reach across the UK.

Founded in 2011, MarketInvoice has funded invoices worth more than £2.7bn, boosting cash flow for thousands of UK businesses.

Barclays is the first high street bank to enter into a partnership with MarketInvoice, giving their customer base access to the fintech’s proprietary single invoice finance product as well as broader digital invoice finance facilities.

The terms of an invoice normally dictate a long payment period that can be up to 120 days, leaving businesses with a cash flow gap in the interim. With invoice financing, SMEs who sell goods or services to other businesses can upload or sync their invoices to MarketInvoice’s platform and sell them to investors, unlocking access to funding.

The proposition will be introduced to Barclays’ SME clients over the coming months in areas across the UK, including the East Midlands, West Midlands, Herts and North West London.

Anil Stocker, MarketInvoice CEO, said: “It’s exciting to be combining the knowledge and footprint of a 325-year old British banking institution with MarketInvoice’s tech-led online finance solutions.

“Bringing this together in a strategic partnership can only mean good news for UK businesses, with the segment we’re targeting responsible for upwards of 60% of UK employment.”

Anil added: “Barclays has a long history of innovation being the first bank to introduce the credit card and the ATM. It makes total sense to partner and introduce our online business finance solutions for their large customer base.

“It’s easy to forget that the companies you see on the FTSE 100 all started as small businesses with founders following a passion. In focusing on the needs of these entrepreneurs through this collaboration, Barclays and MarketInvoice will truly transform the experience of UK companies in sourcing finance.”

Ian Rand, CEO of Barclays Business Bank, commented: “Invoice finance is a product that has come of age in the digital era, it’s efficient, effective and controllable for small businesses.

“A number of our clients told us that they feel pressured into offering longer payment terms in order to stay competitive. This ties up their cash flow, preventing them from seizing growth opportunities.

“Invoice financing gives small businesses the power to obtain funding in a fast and innovative way, and capitalise on those moments. Our corporate bank already offers invoice financing to large businesses, so it’s great news that we’re able to extend the proposition to work for our SME clients as well.”