British peer-to-peer invoice marketplace MarketInvoice has announced that they have taken in 6 million pounds from current investors Northzone and the family office of Indeed.com co-founder Paul Forster, who previously backed the startup with 5 million pounds last December. With this latest round, MarketInvoice intends to extend the range of products for businesses and to take advantage of Innovative Finance ISA, which will allow for tax-free P2P lending when it goes into effect in April 2016, by enabling retail investors to lend on the platform.
MarketInvoice operates by allowing businesses to post invoices and access funds from 1,000 to 5 million (or more) pounds. The service is open to businesses based in the United Kingdom, but they generally expect users to have at least 6 months of trading history and have annual revenues of more than 100,000 pounds, which they verify through financial and anti-fraud checks. MarketInvoice works on a commission basis, taking between 1.5-3% on each transaction that they process.
MarketInvoice launched back in 2011 in order to provide businesses with an outlet for funding their operations by selling their invoices online. To date, the company states that more than 475 million pounds worth of invoices have been funded, with more than 30 million pounds currently raised on a monthly basis.