We are an official partner of the UK Government-owned British Business Bank.
in Government funds has been advanced to growing UK businesses through partnership with MarketFinance.
The money comes from the small business tranche of the Business Finance Partnership, through which the government has committed to provide £100m of funding to diversify the sources of finance available to SMEs.
Following a rigorous and highly competitive selection process, MarketFinance was chosen to channel Government funding to UK businesses in August 2013.
This news was picked up by several sites, including BBC News.
The Government committed an initial amount of £5m to be put through our platform. The regular recycling of funds that occurs on MarketFinance – with investors on average being paid back every 45 days – has meant that the initial funds have been reinvested again and again.
For more about how MarketFinance is helping businesses through this scheme, you can read about our client, Predator Equipment, on the British Business Bank website.
Eamon, MD of Predator, was frustrated that traditional finance providers would not fund his export activity, which is why he turned to MarketFinance.
“How are businesses benefiting from the Government funding and how is it deployed?”
When a business puts an invoice up for sale on MarketFinance, the Government is automatically purchasing a portion of it, at the same return obtained by private investors on our platform. Businesses are notified of the Government’s funding of their invoices as and when it occurs. The Government funds along with private Buyer funds are then made available for clients to draw down within 24 hours.
“Which businesses is the Government funding?
A wide range of businesses have been benefiting from the Government funding going through MarketFinance. Businesses across tech, media, marketing and energy have all been beneficiaries. Since MarketFinance’s launch, 100% of all invoices put up for sale on the platform have been fully funded and the Government’s participation adds further certainty of funding for businesses. Invoices of all sizes are now being fully funded in just a matter of minutes.
“How does an SME get their invoices funded by the UK Government?”
All businesses need to do is register with MarketFinance, for free, in 15 minutes via the online application form. Once verified, they will be free to put their invoices up for sale as and when they choose, when it suits them.
MarketFinance is supported by the British Business Bank (“BBB”), a development bank wholly owned by the UK Government. British Business Bank and its subsidiaries do not offer bank accounts, take deposits or provide regulated banking services. British Business Bank provides its financial support to smaller businesses through its delivery partners. Any decisions to provide finance to smaller businesses are made by MarketFinance, not by the British Business Bank.
Please note that the BBB’s investment over the MarketFinance Platform is part of its wider Business Finance Partnership programme, and that BBB has also invested in other providers of SME funding within and outside the alternative lending space. BBB’s participation in the MarketFinance Platform should not therefore be viewed as an endorsement of any kind of either the MarketFinance product, its risk assessment, operations, originations or any other aspect of the MarketFinance business model. An overview of the BBB’s partnership programme can be found here.
BBB has made the following declaration regarding its investment over the MarketFinance Platform:
The finance for BBB’s investments over the Platform has been supported by investment administered by The Department for Business, Innovation and Skills under the Small Business Tranche of the UK Government’s Business Finance Partnership programme. The objectives of this Tranche are primarily to increase the flow of credit from non-bank lending channels to companies with turnover before £75m across the UK and to diversify the sources of finance available to these businesses;
Funding to Seller Members will be provided on equal terms with Investors from the private sector and neither the Department for Business, Innovation and Skills nor any other UK Government agency is involved with the operation or management of the MI Platform;
The partial funding of this investment by the Department for Business, Innovation and Skills under the Business Finance Partnership programme does not provide a warranty, either expressed or implied, about the activities or procedures of the MI Platform or the performance of individual investments made;
Members of the MI Platform may be contacted to provide information that will be used for statistical purposes to assess the effectiveness of the Business Finance Partnership programme. Any such information will be treated in aggregate and without specific reference to your business activities.