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March 26, 2018

European banks invest £135m on MarketInvoice p2p platform

Banco BNI Europa has assigned £90m and Varengold Bank £45m to MarketInvoices’ p2p-driven platform for business loans and invoice finance.

By Brian Cantwell

Banco BNI Europa has assigned £90m and Varengold Bank £45m to MarketInvoices’ p2p-driven platform for business loans and invoice finance.

Banco BNI Europa’s initial investment of £28.3m in 2016 was followed up with an additional £45m in May 2017, followed by this investment.

MarketInvoice said the bank funding would support larger invoice finance deals as it targeted £3bn in lending by the end of 2018. MarketInvoice reached £2bn worth of invoices and business loans to UK companies last week.

In 2017, the business almost doubled the average annual amount advanced to UK businesses – from £606,000 in 2016 to £1.14m in 2017.

The average value of invoices funded was £96,597, up from £56,495 in the same period.

Overall, sums advanced to UK businesses from institutional investors via MarketInvoice have increased more than 3-fold since 2014 from £119.4m to £445.7m in 2017.

Cumulative funding from institutions stands at £1.1bn which represents a half (52.3%) of the total funds advanced to UK businesses.

Pedro Coelho, executive chairman of Banco BNI Europa said: “Our experience of working with MarketInvoice since 2016 has been exceptional. Our values are aligned on delivering innovative, quick and easy-to-use products that help growing businesses.

Their ability to deliver fast and timely funding means that our investment is being well utilised.

Furthermore, with the onset of Open Banking in the UK, we expect they will get funding to companies faster, who will in turn grow, hire more people and ultimately generate economic growth.”

Lukas Diehl, EVP Marketplace Banking, of Varengold Bank said: “The MarketInvoice model has proven itself to be a dynamic marketplace servicing a vast swathe of businesses.

Increasing our investment was a straightforward decision, in keeping with our ambition to become the bank of choice for the marketplace lending industry. In the year ahead, as Brexit looms, there is significant upside for MarketInvoice in all scenarios.

The company is well placed to serve UK businesses providing export goods and services or those firms that are wary of the trading environment. Cashflow will be central to all businesses and MarketInvoice is well placed to service their funding needs.”


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