Fintech business lender MarketFinance has secured an additional £50m from one of Israel’s largest asset managers, Viola Credit, to lend to UK SMEs under the HM Treasury CBILS initiative.
The CBILS initiative will conclude at the end of September 2020 with pre-submitted applications in September being valid until the end of November.
In readiness to service the last-minute dash for CBILS loans or revolving credit facilities, MarketFinance has secured this additional funding of £50m to support SMEs with their working capital at this crucial time.
Since 2011, institutional investors such as banks, asset managers and family offices have provided the majority (70%) of capital that MarketFinance lends out to businesses.
Anil Stocker, chief executive at MarketFinance, said: “Only 60,409 CBILS facilities have been approved since the pandemic started, versus 1.2m Bounce Back Loan approvals.
“This shows there are many businesses who could still benefit from accessing CBILS finance before the scheme ends.
“For many who took a Bounce Back Loan, there is now a short window where they can refinance onto a larger CBILS facility which could see them over to the new year.
“Vast swathes of the UK SME community haven’t applied or remain unaware of the CBILS initiative and that it concludes in a few weeks. By lining up this additional funding, we want to send a strong signal to the market that MarketFinance is here to help”.
The announcement comes as MarketFinance launches a process in which SMEs will, through one application, be presented with a variety of finance options and be able to select those best suited to their needs.
The lender is now able to offer a combination of business loans, invoice finance and revolving credit facilities through this single application.
This year the company has added business loans and revolving credit facilities to a product suite including selective invoice finance, contract finance and confidential whole-ledger invoice finance.
Anil Stocker said: “Since launching CBILS loans, we’re already lending out around £10m per month and our product development in invoice finance means we’re getting funds out 40% faster than 6 months ago.
“We’re constantly working on how we can reduce the time to funding for our new applicants and existing users. CBILS has only accelerated the pace at which we’re investing in our various products.
“The MarketFinance vision is to make finance available, easy-to-use and fairly priced to viable small businesses that need it most.”
MarketFinance is accredited to lend under the Coronavirus Business Interruption Loan Scheme (CBILS), providing term loans from £50,001 to £150,000 and revolving credit facilities from £50,001 to £5m to UK SMEs.