SMEs often find themselves in the dreaded “middle ground” when it comes to funding.
More often than not, larger businesses are considered too risky for traditional banking loans and not big enough for the corporate banking facilities. How are such businesses able to meet their financial needs in time to come? Now, business finance company MarketInvoice has kickstarted a new finance facility to help companies in emerging markets stay afloat.
MarketInvoice has launched a new specialist team called Corporate Solutions to provide bigger loans for Britain’s larger businesses. Estimated to be a £13billion finance market, these businesses can now secure a credit facility of up to £5 million (based on their revenue) and up to £500K as a business loan on a flexible term of up to three years from MarketInvoice. These limits will increase steadily over the next 12 months.
Over the last two years, MarketInvoice has provided over £550m to a range of businesses in the telecoms, engineering, consulting, energy and technology sectors. These businesses were more often than not considered too large to be served by traditional business banking services but not large enough for corporate banking facilities.
“We’re delighted to be able to serve larger businesses with their finance needs. These are high-growth companies forging new ground by transforming their industry, growing internationally and driving UK GDP, Craig Flyger, Corporate Solutions Director at MarketInvoice said. We want to power and propel their growth. Our team has the necessary experience and resources to structure larger facilities tailored to the needs of these businesses very quickly.”
Infinity Energy, a UK-based SME, has praised Market Invoice for their finance facility that has since enabled them to tackle their long-term payments successfully.
“We chose MarketInvoice as a finance partner in our early days to tackle long payment terms,” Marvin Patel, Managing Director at growing business Infinity Energy said. As we’ve grown, we’ve needed larger credit limits. Now that we’re taking on bigger projects with more complex contracts, we needed a larger finance facility. It’s great to continue our relationship with MarketInvoice.”
Since 2011, MarketInvoice has provided over £2.6 billion in business finance to thousands of companies across the UK. These were businesses who waited on long payment terms and were seeking finance to support their growth. Corporate Solutions aims to support larger businesses and get them the finance they need.
“We’ve launched Corporate Solutions to serve the needs of the companies who are currently falling into a no-man’s land between business banking and corporate banking,” Mr Flyger added. “We estimate that the annual lending opportunity to these companies, who are grossly underserved and ignored by traditional business lenders, is worth £13b. Our solid track record in providing greater access to finance and responsible lending decisions is not only testament to our robust platform and credit risk model, but also to the trust business owners have placed in us as their financial partner”.
Small and medium enterprises make up the largest portion of UK’s employment base. Therefore, it is essential to have favourable borrowing schemes in place to support business growth, bringing in more jobs, wealth, and boost the economy.