MarketInvoice is the UK’s first invoice trading platform or exchange for receivables. There are many benefits for both investors and also companies of an invoice marketplace. The MarkInvoice platform facilitates an alternative form of online invoice discounting.
Principally, if you are an SME (a small/medium sized enterprise), then historically you would have to initially be locked into an arrangement with an existing financing company who can chop and change the financing terms that they offer you. They can arbitrarily withdraw funding for certain debtors or impose audits upon you. With an invoice marketplace this no longer happens – buyers must compete to offer you the most competitive terms.
Advantages of using an invoice marketplace
One of the advantages of Marketinvoice is that unlike conventional invoice discounting or factoring mechanisms, one is not obliged to discount the entire debtor ledger – in fact, one can choose to discount only that which is required to be discounted. This has numerous advantages. For instance, if you sell to a number of large debtors and a number of small debtors, one can sell only the receivables to the large debtors and not discount those to the smaller debtors. This means that there is a significant pricing advantage, not only in terms of the discount offered, but also in terms of the fees charged. Unlike conventional financing mechanisms, you will only be charged for the discounted invoices, not the whole turnover.
MarketInvoice offers selective invoice discounting where there are no personal guarantees, no contracts, no hidden costs or all asset liens and the only obligation is to repurchase your invoice if your customers do not pay. Importantly, using Marketinvoice is completely confidential to a business’ end customer and no notification is necessary. Companies maintain control of their invoice collection procedures and customer relationships.With Marketinvoice you raise working capital on your terms.
MarketInvoice facilitate quick access to capital; once we have completed our company checks, an auction can be launched within a few days. The auction process itself typically lasts 2 days. Below is an example of a typical invoice auction on our platform:
For investors on our platform, the benefits are clear – they are able to access an asset class larger than mortgages which they previously would never have been able to access. That is the advantage of a market for invoices – there is a place where buyers and sellers connect, driving down financing costs, but at the same time opening up a new non-correlated asset class to investors.