Peer-to-peer invoice discount firm launches

AN innovative online working capital provider has launched a Manchester office with a pledge to shake up the regional market for small businesses finance.

MarketInvoice, which launched in London three years ago, operates a peer-to-peer funding model which enables small businesses to sell their invoices to a network of investors, releasing money quickly so they don’t have to wait for payment of up to 120 days.

Since its launch in 2011, invoices worth nearly £250m have been traded. In August 2013, the Department for Business joined the panel of investors  and made £5m available to be accessed by MarketInvoice customers

Its Manchester office, in Chancery Place, Brown Street is its first outside the capital. It will have seven permanent staff by the end of the year.  Former Aldermore regional sales manager Benjamin Day, 29, has been recruited as head of sales north.

Co-founder and chief executive Anil Stocker explained the concept: “We enable companies to secure the investment that can lead to hiring new staff, taking on new projects, and buying new equipment.

“Unlike banks, we don’t need businesses to sign lengthy contracts with opaque fees, we don’t take more than 24 hours to approve applications, and we don’t need to take debentures or personal guarantees.

“Businesses in the North West are facing a perfect storm of long payment terms from large corporate customers and a lack of available finance from the banks. Even when businesses are successful in applying for finance, the process can take weeks and will usually see a bank take significant security over your business or personal assets. This is turning businesses off using finance to capitalise on growth opportunities. We’re here to change that.”

Benjamin Day added: “Businesses in the North West are ready for new opportunities and don’t want to wait around for the banks to catch up with them. Business finance is changing.

“Business owners are beginning to see they don’t need to wait around for weeks on end to agree funding, they don’t need to sign debentures or personal guarantees, and they don’t need to agree long contracts with hidden fees. Finance can be much more simple.”