The online marketplace enabling small firms to auction their sales invoices to the highest bidder, helping them manage their cashflow
Founders: Anil Stocker and Charles Delingpole
Launched: February 2011
The brainchild of finance professionals Anil Stocker and Charles Delingpole, Marketinvoice is an evolution of the invoice finance model, which aims to stop small companies being squeezed by late-paying clients. A small firm can put a sales invoice on the market as soon as it is raised, which investors then bid for. The small business receives payment straight away; the winning investor(s) makes a profit once the invoice is settled.
Through their careers as a private equity professional (Stocker) and investment banker (Delingpole), the founders noticed many small businesses were becoming trapped in a “double credit crunch”, with banks who wouldn’t lend on the hand, and large customers flaunting payment terms on the other.
The founders insist the model is cheaper than invoice finance or factoring, putting small businesses “in the driving seat”. Inspired by the Receivables Exchange in the US, Marketinvoice is the first of its kind in Europe, and it seems to be striking a chord. The marketplace has already channelled more than £3m to UK small companies, earning itself 0.5% of every sale.