We have no minimum or maximum on size; you can sell invoices with values as small you like, and we have no upper limit as to the size (our largest invoice traded was £1.2m!).
The main thing is that the invoice you’re planning to trade is to a credit-worthy customer.
So, what do we mean by ‘credit-worthy customers’?
Here are the criteria:
Ownership: Companies listed on stock exchanges are generally acceptable, plus companies that are backed by venture capital companies or owned by private equity. Government debt is acceptable.
Size: Debtors that have revenue in excess of £8m are more likely to be accepted than smaller companies.
Credit worthiness: Debtors that have traded debt or outstanding bonds on an exchange are more likely to be accepted than not. Companies that have high yielding debt are less likely to be accepted than companies with low yield debt. Companies that are likely to go into administration or bankruptcy will likely not qualify as debtors on MarketFinance.
Profitability: Companies that are highly profitable, particularly after debt servicing and other liabilities after interest are taken into account, are more likely to be accepted on MarketFinance.
Geographical location/domicile: Companies that are based in the UK or OECD countries are more likely to be accepted than those that are not. Companies that are based in countries that have significant fraud or money-laundering histories are likely to be rejected.