- a new Innovative Market-Based Working Capital Solution Helping Small-Medium Enterprises Across the UK Source Flexible Working Capital

By Marketinvoice, PRNE
Tuesday, April 12, 2011

LONDON, April 13, 2011 - An innovative, disruptive new financing marketplace has launched to help
UK SMEs access working capital. Based in Old Street, London, Marketinvoice is
the UK's first online trading marketplace allowing businesses to selectively
sell the outstanding invoices of large corporate customers to raise flexible
working capital. Businesses can register on Marketinvoice, and then auction
invoices due to be paid in 30, 60, 90 days, receiving cash in advance from
global investors who compete to provide competitive funding, guaranteeing
SMEs the lowest cost of finance.

Marketinvoice is currently fully operational with 10 businesses already
using the marketplace to raise flexible working capital. These businesses are
in the recruitment, consulting, IT software, and wholesale industries, with
many more businesses looking to join from sectors including marketing, film
production, accountancy, outsourcing, research, import/export and

Cash funding for SMEs is provided through competitive auction from a wide
range of institutional investors (investment funds, asset managers, family
offices, high net worth individuals). Marketinvoice brings new capital into
this market by creating a standardised and secure trading environment. It
encourages those SMEs that do not wish to enter into traditional factoring
due to cost, contractual, and reputational concerns, to selectively use the
competitive marketplace at times when short-term funding is desired or
required. Importantly, using Marketinvoice is completely confidential to a
business' end corporate customer and no notification is necessary. Businesses
maintain control of their invoice collection procedures and customer

Marketinvoice aims to alleviate the problem of the "double credit
crunch". SMEs, striving to grow as the economy recovers, are squeezed between
a problematic borrowing environment, and their large corporate customers,
many of whom burden SMEs with unilaterally extended payment terms. Some of
the most problematic customers are those large companies who were acquired by
private equity firms during the boom years. Additionally, Marketinvoice is
helping a number of start-up firms, who rather than sell expensive equity to
fund working capital, can use Marketinvoice.

The Marketinvoice model

- In contrast to traditional factoring, on Marketinvoice, pricing is
transparent, flexible and transactional, there is no contractual lock-in,
there is no obligation for businesses to auction all their invoices, and
personal guarantees are not required.

- This means that there are significant advantages for SMEs: mainly, high
advance rates and low fees (including the absence of often very significant
monthly minimum fees). This is because companies use Marketinvoice when they
want, only choosing to raise finance against invoices they choose to sell,
not their whole turnover.

- In addition, personal guarantees are not required, and there is
complete confidentiality - unlike in factoring, customers are not notified
that the receivable has been sold.

- Extended scope (investors registered on Marketinvoice are prepared to
buy invoices not typically accepted by many factors and banks)

- Using Marketinvoice, young/start-up businesses, can avoid the need to
give up valuable equity to fund working capital

- A disruptive innovation that draws upon successful implementation of
similar models in the United States. Never before have non-bank asset
managers been able to acquire SME corporate invoices in a centralised and
secure online marketplace, opening up new sources of funding and allowing
SMEs to drive down the price of their funding,.

Marketinvoice financing

Marketinvoice successfully raised over $1m in seed funding from a
selection of angel investors and former entrepreneurs in September 2010.
Backers include Rumi Verjee - the Founder of Domino's Pizza in the U.K. and
former owner of Watford Football Club, Ivan Levy, the founder of Body Shop
France/Switzerland and Martin Gill, technology entrepreneur, founder and CFO
of Conduit Communications, a software and web development company, acquired
for over GBP150m.



- Further materials including SME case studies available on

- Reach the Marketinvoice Team on +44(0)207-078-7621

- Email


Anil Stocker +44(0)7775547597; Charles Delingpole +44(0)7825568795

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