This has come on the back of its most successful month yet with £500,000 of SME capital raised through the platform in August alone.
With SMEs finding it hard to raise working capital in the current economic climate as banks squeeze lending and large corporates delay invoice payment, more companies are opting for alternative finance structures.
MarketInvoice enables companies to boost their short-term working capital requirements, business owners and managers use the platform to obtain up to 90% of the invoice value auctioned upfront from high net worth clients and alternative institutional investors (such as asset managers family offices, and hedge funds) who compete in real time to provide companies with the lowest cost of capital.
Anil Stocker, Co-founder and Director of MarketInvoice says:
“Over the last few months we have seen an increasing number of small businesses turn to alternative financing solutions to help run their businesses.
"We now have over 40 businesses signed up to our platform and our latest milestone highlights the growing need of SMEs looking to alternative means of support to help keep their businesses growing.
“The current climate means it is very difficult for SMEs to access bank finance and last week’s downgrade of 12 UK banks also suggests that the Government is now less willing to stand behind each and every bank that has underperformed, and constantly bail them out.
"This downgrade means banks will find it more expensive to access wholesale capital from the markets which could have the knock-on effect of lowering even further the amount they lend to British SMEs, and increase the cost of these loans.
"What is more, the Chancellor’s announcement that the Treasury is preparing to implement a policy of credit-easing illustrates how little faith they have in the banking sector to effectively allocate fresh liquidity to where it is most needed.
"The Government must now champion credible alternatives such as ours in order to facilitate access to capital for UK SMEs. A UK economic recovery depends on these companies having the confidence and capital to create new jobs and stimulate growth.”
