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SME Growth Hack - 'Disruptive Finance to Power Growth'
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SME Growth Hack - 'Disruptive Finance to Power Growth'


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Disruptive Finance to Power Growth. Ari Last, Partnership Development - Market Invoice.

Disruptive Finance to Power Growth. Ari Last, Partnership Development - Market Invoice.

Published in: Economy & Finance, Business

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  • 1. Next Generation Working Capital
  • 2. WHY DO WE EXIST? SME’s are struggling in the midst of a perfect storm. Dominant Banks Reluctant To Lend Dominant, Large Debtors Taking Longer to Pay SMEs owed a record £35.3bn in late payments in 2012 Top 6 UK banks control over 70% of business lending Basel 3 legislation forcing banks to lend less and at increased rates 800,000+ UK SMEs got paid late last year Banks increasingly looking to push SMEs into Factoring arrangements that they’re not suited to Over 41% of SMEs say cash flow is a major barrier to success / growth 76% rejection rate of SMEs seeking invoice finance. Over 150 million man-hours lost chasing late payments every year UK SMEs With 2-499 employees and £1tn revenue ‚Squeezed‛ Sources: Bank of England, SME Finance Monitor, National Press, ABFA SME Finance Monitor Q3 2011
  • 3. WHAT DO WE DO? MarketInvoice is an online platform that brings together: Companies looking to raise working capital against invoices from large customers. Global investors who advance cash in exchange for a small discount fee. UK Government, who are investing £40m per year to SMEs through our platform. Global Investors Companies Recruitment Agencies Software Developers Software Consultancies Marketing Consultancies Manufacturers Management Consultancies Engineering Firms Architecture Firms Wholesalers Import/Exporters … and many more Competitive online marketplace SMEs sell an invoice at a discount in return for cash up front. Investors compete for the opportunity to buy the invoice… High Net Worth Individuals Asset Managers Family Offices Investment Funds … and others Government £40m fund to be channelled to SMEs MarketInvoice charges a small upfront fee SMEs get a Great Price Government initiative - Business Finance Partnership
  • 4. WHY DO SMEs USE US? Erasing Pain Points. Offering More control, choice and value. Speed: It takes no time to set up, and capital is advanced in 1-2 days. Flexibility: They use us as and when they need, selling one invoice at a time. Transparency: They see one cost of selling the invoice upfront, that’s it. Peace of Mind: No lock-in, no personal guarantees. We work on their terms.
  • 5. CASE STUDIES High Growth. Tech & Services-based. Exporters. • • • • • Online retailer, supplying Amazon Exporting to 126 countries Payment terms of 60 days Huge recent growth Relative lack of trading history • • • • Fast growing food distributor New large orders to fulfil Significant upfront costs Payment terms of 30 days • • • • Mobile App developer Supplying large telecoms company Payment terms of 60 days Light on ‘fixed assets’
  • 6. WHAT HAVE WE DONE? Rapid growth and Government investment Auction Volume (GBP thousands) MI Trading Stats (Since Inception) Total Volume: Current monthly volumes: Av. auction size: Av. # of auctions per user: Loss rate: £90m £10m+ £80k 8 0.1% 19,200 10,300 6,234 160 425 970 1,519 Q1 2011 Q2 2011 Q3 2011 Q4 2011 6,640 7,341 Q2 2012 Q3 2012 Q4 2012 3,621 Q1 2012 5,683 Q1 2013 Q2 2013 Q3 2013
  • 7. Thank you! 0845 548 0508