Barclays takes stake in SME lender MarketInvoice
Details were not disclosed, because we live in the age of secrecy, but the bank says the deal is a key part of its plans to invest in new business models for growth, and MarketInvoice’s ambition to broaden its reach across the UK.
Ian Rand, CEO of Barclays Business Bank, says: “A number of our clients told us that they feel pressured into offering longer payment terms in order to stay competitive. This ties up their cash flow, preventing them from seizing growth opportunities.”
Founded in 2011, MarketInvoice has funded invoices worth more than £2.7 billion. Barclays is the first high street bank to enter into a partnership with the firm, giving its customer base access to the fintech’s single invoice finance product and digital invoice finance facilities.
According to the duo, the terms of an invoice normally dictate a long payment period that can be up to 120 days, leaving businesses with a cash flow gap in the interim.
With invoice financing, SMEs who sell goods or services to other businesses can upload or sync their invoices to MarketInvoice’s platform and sell them to investors.
The proposition will be introduced to Barclays’ SME clients over the coming months in areas across the UK, including the East Midlands, West Midlands, Herts and North West London, with a full roll-out set to commence nationwide in 2019.
The bank also recently launched £100,000 unsecured lending for SMEs, doubling its maximum for unsecured business loans from £50,000 to £100,000.
Away from this deal, Barclays has had mixed fortunes.
Last month, Cloud9 Technologies completed a $14 million Series B fundraising round, led by Barclays and including JP Morgan and NEX Group.
However, like a weary pugilist reeling from a canny combo, Barclays was left battered and bruised in the latest figures for the UK’s Current Account Switch Service (CASS).
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