28th July 2014
Two major fintech companies are partnering to offer businesses unparalleled access to almost-instant funding.
The partnership between MarketInvoice and Xero will enable businesses to apply and be approved for funding directly through their accounting software in a total of just 20 minutes. After the one-off approval process is complete businesses can repeatedly generate almost-instant finance with just three clicks of a mouse by selling their long-dated invoices directly to investors.
Utilising the data held by Xero, funding decisions can be made much faster than ever before.
This is the first time instant, flexible finance has been available to UK businesses outside of an overdraft or credit card, with the process of application significantly simpler and more accessible than traditional forms of finance.
MarketInvoice CEO Anil Stocker said:
“Accessing finance for a growing business has long been a painstaking process dogged by delays, hidden fees, and complex long-term contracts. All of that is changing. MarketInvoice and Xero are both companies using innovation to shake-up jaded industries and this partnership changes the way businesses access finance.
“We’re harnessing two pioneering innovations to put power back in the hands of business owners. By bringing big data and intelligent finance together we can help businesses access funding in a tiny fraction of the time it takes to even meet your bank manager.”
Gary Turner, Xero UK MD, said:
“We are pleased to partner with MarketInvoice to offer business owners access to new, alternative and flexible means of finance through this new addition to our cloud ecosystem.
“The chronic challenge small businesses face in trying to access working capital isn’t helped by the fact their accounting data is locked away inside archaic systems and often out of date. Xero’s cloud-based accounting software easily eliminates these issues and so it’s very encouraging to see new funding services now emerging that unlock cash tied up in long-dated invoices directly through our cloud accounting platform.”
How it works:
Businesses use the MarketInvoice Xero portal and click ‘apply through Xero’. They then login (if not already logged in) to their Xero account and an application form is pre-populated with data from Xero. They set up a password and contact number and click apply. MarketInvoice will get back to within 24 hours (usually 20 minutes) to let them know if they’ve been approved.
Once approved businesses can access the MarketInvoice platform directly from Xero and sell selected invoices in just three clicks. Funding will be advanced within a couple of hours.
About MarketInvoice (http://www.marketinvoice.com)
Businesses use MarketInvoice to selectively sell their invoices to a network of global investors.
The online platform is a working capital solution, giving businesses immediate access to funds otherwise tied up for between 30 to 120 days.
Launched in 2011, MarketInvoice has helped hundreds of businesses overcome the lengthy payment terms of their large customers. More than £205m has been raised through the platform, with SMEs using the funds to hire more staff, launch new products and pay their suppliers.
MarketInvoice is a new type of p2p funding solution, accessible to a wide range of UK businesses. Businesses are able to sell single invoices online, only as and when they need to. There are no contracts, hidden fees or personal guarantees; new clients can sign up, sell an invoice and draw down funds on the same day.
Invoices are funded by a global pool of investors including high net worth individuals. In August 2013, the UK government began investing in SME invoices via MarketInvoice as part of their Business Finance Partnership scheme. This initiative will see £40m channelled through the platform over a 12 month period.
About Xero (http://www.xero.com)
Xero is beautiful, easy-to-use online accounting software for small businesses and their advisors. Xero has over 300,000 paying customers in more than 100 countries around the world. Xero seamlessly integrates with over 300 best-in-class business tools, and was recently ranked No. 1 by Forbes as the World’s Most Innovative Growth Company.