MarketInvoice has revealed that during its hugely successful first year it has grown to reach a monthly trading figure of £2 million.
After starting from scratch In February 2011, the London-based company has become a model of success for other SMEs. In its first month the firm traded £20,000, but since then this grown by 100 per cent.
The online marketplace for capital financing offers small businesses an alternative way to raise funds via its “eBay for invoices”.
It works by giving businesses the chance to sell invoices of large customers to global institutional investors that bid to provide funding at the lowest cost.
MarketInvoice has revealed that so far around £8m of funding has been channelled to 100 firms.
Anil Stocker, founder of MarketInvoice, said that the firm launched at just the right time as more small businesses started to look at ways to raise working capital without going through the banks.
“We spotted a problem, which we were able to attack with the combination of highly sophisticated technology and deep-pocketed investors,” he said.
“The technology enabled us to create a whole new market – a way for big investors like hedge funds to channel money to SMEs and revolutionize the dusty world of invoice financing.”
One company that has already benefited from MarketInvoice’s business model is mobile app development studio FabriQate.
Aneesh Varma, co-founder of FabriQate, said: “MarketInvoice has completely changed the way I finance my company – when you can decrease the amount of time invoices are outstanding from 60 days to five, it can be totally game changing for a growing business like ours.
“I’m happy to say my business is in the process of hiring new employees, something we wouldn’t have been able to do without affordable capital.”
Stocker believes his company offers small businesses a fantastic opportunity to expand.
“Getting paid for a huge project in a couple of days rather than a couple of months means you can buy the equipment and hire the staff you need for that next big job, and stay ahead of the competition.”
With its first year being a massive success, MarketInvoice is now looking for more of the same in the next 12 months.
Stocker has also called on the government to do more to let firms know they don’t always have to turn towards high street banks.
He said: “We’re hoping to continue our amazing growth, and keep channelling as much as we can to rapidly growing small businesses.
“We want to roll out new products, like our highly innovative Supply Chain finance solution, which makes it easy for large corporates to get money to trusted suppliers.
“One thing we are particularly hoping for is that the government will take steps to raise awareness of alternative funding providers like us.”