MarketInvoice vs. Invoice Discounting

Invoice Discounting and Factoring

Traditional sources of short-term funding tend to lock individual businesses into a captive relationship where they are dictated terms by their funding provider. Examples include:

• Whole turnover invoice discounting arrangements
• Ongoing monthly services fees, and high arrangement fees
• Contractual lock-ins with long notice periods
• Onerous security arrangements (debentures and Director personal guarantees)
• Facilities being lowered at the whim of the funding provider, usually when they are most needed

Traditional sources of funding also have a prescriptive manner in allocating funds and funding applicants. They turn away high growth businesses with a lack of trading history, or where a business model is poorly understood, as this is judged to fall outside their predetermined risk profile.

MarketInvoice

With MarketInvoice, businesses can use the online marketplace to:

• Sell invoices as often or as little as they want, only paying transparent transaction fees on invoices they successfully sell
• Create auctions where multiple buyers compete against each other to advance the highest amount of cash at the lowest fee
• Obtain pricing per invoice, rather than unilaterally across all their debtor book
• Drive funding costs lower over time once they have built up a successful trading history in the marketplace
• Avoid company debentures and personal guarantees

The MarketInvoice buyer community is comprised of sophisticated investment professionals, who are among the world’s leaders in the pricing of risk. This means they are better able to generate pricing for the specific invoices of a business which might be mis-priced or turned away by traditional funding sources.

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