- MarketInvoice has delivered a 10% net return1 to investors in 2017
- Alternative finance model presents an attractive investment opportunity for HNWs and Institutions
Business finance company MarketInvoice has outperformed fellow peer-to-peer lenders achieving 3-year net returns of 30.2% for investors2. Furthermore, in 2017, MarketInvoice generated 10% annualised net return1 for investors to Q3 2017.
These net returns are calculated using AltFi’s proprietary ‘Uniform Vintage Portfolio Analysis Methodology’ that assumes an investor invests an equal sized investment into each monthly cohort of origination, and this investment is perfectly diversified across all loans originated in that period. MarketInvoice has a diverse base of investors and not all investors earn similar returns because of differences in risk tolerance.
Aman Mehra, Head of Investor Development at MarketInvoicecommented: “As MarketInvoice matures as a platform, we continue to make significant investments in our Risk function that include further strengthening our risk methodology, credit models and processes. These have been the primary driver of the return outperformance at MarketInvoice.”
“Despite the political and financial uncertainty this year, the short-dated and secured nature of our invoice financing product has allowed us to be responsive and closely monitor our credit performance, resulting in greater than expected returns for our investor base. Additionally, our net returns1 over a three-year period have outperformed the Alt-Fi UK Index, reinforcing the fact that invoice financing is a long-term viable asset class to invest in.
“As we grow our investment product portfolio to cater for a wider range of businesses, we continue to see strong appetite from HNWs and Institutions.”
MarketInvoice has been attracting interest from high net worth individuals (HNWs) since starting in 2011 and more recently has secured institutional investors including Banco BNI Europa (£45m) and Varengold Bank AG (£45).
In 2017, MarketInvoice launched two new products which have attracted interest from HNWs and Institutions alike. The Confidential Invoice Discounting facility was launched in February and a Business Loans solution was launched in November, both sit alongside a Selective Invoice Finance service which was the initial service offer at MarketInvoice since 2011. With these launches, MarketInvoice has further diversified its’ investment offerings by creating additional alternative finance opportunities to cater to investors with different risk appetites.
Since 2011, MarketInvoice has advanced more than £1.7b to UK businesses through its innovative finance solutions encompassing invoice finance and business loans. This funding has come from a combination of sophisticated investors and institutions such as banks and asset managers.
MarketInvoice business highlights (last 12 months):
- Advanced over £1.7 billion to UK businesses to date (since 2011)
- European banks now participating directly on the platform alongside the British Business Bank, local councils and sophisticated investors.
- Provided record monthly funding to UK businesses in November 2017 (£88.4m) and delivered 67% year-on-year funding growth from £117.6m (Q3 2016) to £196.2m (Q3 2017)
- Appointed Giles Andrews OBE, the founding father of peer-to-peer lending, as Chairman
- Selected in the Global CB Insights Fintech250 2017 and the European FinTech50 2017 rankings
MarketInvoice’s main strategic ambition is to broaden its reach to be able to support a wider range of businesses, from start-ups to larger businesses looking to scale up. The company aims to help even more companies with their working capital needs, so business owners can save time and focus on running their business.