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A new way to fund working capital
MarketInvoice @Accountex 2015
CONFIDENTIAL
2 2CONFIDENTIAL
Seminar overview
1. The rise of alternative finance
2. The MarketInvoice solution
3. Client case study
4. Sage integration – demo
5. A tool for growth
6. Pricing
7. Working with accountants
3 3CONFIDENTIAL
The rise of alternative finance
Explosive growth but awareness still extremely lowHuge growth but low awareness
4CONFIDENTIAL 4
Accountants have a major role to play
88% of SMEs who made a loan application did so with their bank
31% of overdraft applications were initially rejected
61% of loan applications were initially rejected
43% of SMEs looking to borrow from banks for the first time were rejected
SME’s need educating about alternatives to their bank
5CONFIDENTIAL 5
MarketInvoice snapshot
£380 million funded in 4 years, 220% volume growth in 2014
£40m of available investor funds, including £6m from the UK Government and the Greater Manchester Combined Authority
Working with hundreds of accountants in the UK
Integrations with Sage 50 and other online accounting platforms
Widespread media coverage and numerous industry awards
We are the most advanced, fastest-growing invoice finance platform in the largest invoice finance market in
the world
6CONFIDENTIAL
The problem…
Banking retrenchment
• General withdrawal of overdrafts to smaller SMEs
• High rejection rate of SME loan applications
Long payment terms
• Businesses consistently owed over £30bn in late payments
• Over 41% of businesses say cash flow is a major barrier to success / growth
MarketInvoice can help your clients get out of the three-pronged credit squeeze
• Banks’ invoice finance product is inflexible; expensive; onerous and complex
• Only ~5% of UK SMEs use traditional invoice finance as a result
Banking retrenchment
Long payment terms
Maligned invoice finance
UK SME’s facing stunted growth and are turning away trade
7CONFIDENTIAL 7
The solution…
Register, sell invoices and
receiving funds in 24 hours.
No personal guarantees or requirements
for debentures.
See exactly what they'll pay before selling each invoice.
Use us selectively. Only
as and when they need to. No
contractual lock-in
FLEXIBILITY SPEED STRESS-FREE TRANSPARENCY
$€ £
More control, choice and value
8 8CONFIDENTIAL
How it works
• MI targets, on-boards, and grades businesses who then list eligible invoices on the MI platform for funding
• MI advances funds held by investors on the MI platform, according to their risk/return preferences
• 30-90 days later, the end customer pays the invoice. MarketInvoice returns funds and fees to investors and settles transaction
Global private investors
• High-net-worth individuals
• Asset managers
• Family offices
• Investment funds
Public institutions
• British Business Bank (£40m annually)
• Other public institutions (~£16m annually)
Buyers
Our business customers span many sizes, stages and sectors:
• High-growth businesses with turnover between £100k–£100m
• Client funding invoices of all sizes, to debtors of all sizes
• 80% of our clients have never used invoice finance before
Sellers
1
2
3
A proprietary technology platform, fuelling SME growth
9CONFIDENTIAL
Customer case study: Scaramouche & Fandango
MI advances remaining
15% to S&F
S&F customers submit
payment(via MI client
account)
• Scaramouche & Fandango (“S&F”) manufactures high-end men’s bath and body care products, supplying retailers in the UK, USA and Europe
• Customers operate on 60–90 day payment terms, so S&F uses MarketInvoice for working capital
Day 1: Sale
Day 60+: Payment
MI advances 85% of invoice value to S&F; S&F reinvests funds to grow
business
MI verifies invoice
Scaramouche & Fandango ships product
to retailers
10 10CONFIDENTIAL
Fast & simple sign-up process
15-minute online sign-up – supercharged by accounting integrations
11CONFIDENTIAL 11
Best-in-class customer experience
2015 award for customer experience
4%
18%
79%
3 stars4 stars5 stars
15-minute online signup – supercharged by accounting integrations e.g. Sage 50
Seamless risk assessment powered by integrations with Experian, Companies House and social media
10-minute response time to new enquiries
Application-to-funding in as little as 24 hours
Award-winning customer service
A product your clients will love
12CONFIDENTIAL
A new product for growing companies
of our clients have never used invoice finance before
Our customers exhibit average annual revenue growth of
~25% of the invoices on our
platform are for export
30%
Customers by industry
Energy & utili-ties
Marketing & media
TechnologyConstruction &
engineering
Professional services
Consumer products
Industrials & infrastructure
Healthcare
80%
A growth-acceleration tool for some of the best businesses in the UK
Order more stock
Pay suppliers earlier
Offer credit terms to win new customers
Hire more staff
Launch marketing campaigns
Enter new markets
Using funds to:
13CONFIDENTIAL
13
Transparent, simple, competitive fees
Total cost of funding to businesses is on average 2.5 – 3% of invoice value.
Only 2 fees. A processing fee to MarketInvoice and an interest rate to investors.
Pricing gets cheaper the more a company trades.
*Cost calculator on MarketInvoice website
Simple, competitive pricing that gets better the more a customer trades
14CONFIDENTIAL
In partnership with accountants
An innovative, seamless service – that you control
• Mange the entire application process for your client
• Use Sage 50 integration to apply and trade instantly
• Monitor complete trading activity online, in real time
• Grow your brand and educate your client-base in partnership with MI
Register as a partner online
Apply & trade via Sage 50
Monitor activity online