With over USD 4.5 billion assets under management globally, Viola, an Israel-based technology investment group, has previously invested with MarketFinance a total of USD 75 million to support the company’s entry into the business loans segment.
The newly announced facility is available in Sterling, US Dollars, and Euros and it will enable more online businesses to offer up to 90 days flexible payment terms at checkout to customers across multiple regions. With this agreement, MarketFinance is enabled to provide credit up to a yearly worth of GBP 240 million on rolling 45-90-day terms to UK-based businesses.
MarketFinance has made over GBP 45 million available via embedded finance to more than 2,000 buyers; with MarketFinance being able to raise funds and lend in local currencies in a challenging global investment market, UK-based suppliers can better serve buyers in Europe and North America, thus supporting their international growth.
Nivoda, a UK-based online marketplace for diamonds that serves the global jewellery industry, is one of the companies already making use of embedded finance. Offering flexible payment and financing options in multiple jurisdictions and currencies is seen as a vital ability when having buyers and sellers located all over the world. Nivoda representatives have stated that working with MarketFinance helps them offer their customers 30- and 60-days credit, when needed, helping them increase business profitability.
MarketFinance representatives have stated in the press release that they believe embedded finance to bring significant benefits for SMEs in the years to come. With features such as seamless authentication integration and multiple payment and pay-later options, alongside instant payment receival, businesses believe that diverse payment and credit offerings will help them stand out from competitors and increase sales in a world where inflation is driving up costs and traditional financial providers struggle to fill the gap.
The funding announcement follows a September 2022 forecast by Bain & Company stating that in the US alone B2B embedded finance payments are expected to grow threefold to USD 2.6 trillion by 2026.
MarketFinance operates a proprietary fintech platform that gives UK SMEs access to payments, working capital, and lending options, with easy integration and fast credit decisions. The company has helped businesses collect more than USD 20 billion in B2B payments since 2011, and advanced over USD 3 billion worth of credit through working capital and business loans.
MarketFinance has a wide-reaching network of strategic partners including Barclays Bank UK PLC, Tide Bank, Equals Group, and Ebury and is backed by equity investors such as Northzone, Barclays Bank UK PLC, and Mouro Capital (owned by Santander Bank).
In 2021, the company reached profitability driven mostly by the business demand for working capital over the pandemic, product development to offer embedded finance with key B2B platform partners, and its role as a delivery partner for the British Business Bank lending schemes, CBILS and RLS.
In May 2022, MarketFinance received a GBP 100 million funding from Deutsche Bank to support the expansion of its lending capabilities to underserved SMEs. The announcement followed the Federation of Small Businesses (FSB)’s quarterly Small Business Index (SBI) which showed UK businesses’ lending as having hit an all-time low in the first quarter of 2022, with less than one in ten (9%) of small firms having applied for financing.
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