Brokers winning new business through peer-to-peer lending
Commercial finance brokers are winning more new business and better servicing existing clients by taking advantage of alternative lending platforms.
This is the key message MarketInvoice, peer-to-peer lender for businesses, will be sharing with attendees at the NACFB Commercial Finance Expo 2016 on 15th June at the NEC in Birmingham.
Tom Davenport, head of partnerships, said:
“Alternative lenders and online platforms are proving a faster, more accessible solution for SMEs than the banks, who have scaled back small business financing since the crisis. Brokers who refer businesses to this new generation of lenders are reaping the rewards and helping their clients grow.
“We’ve noticed a real demand from our partners, with business owners looking for a flexible, reliable source of funding, that doesn’t come with hidden costs and lengthy paperwork. 75% of the businesses that come to us have never used invoice finance before.”
The number of UK businesses borrowing through marketplace lenders has sky-rocketed in recent time. Last year, SMEs borrowed over £1.6bn through UK peer-to-peer platforms, almost a 70% increase on 2014, and 450% more than 2013. The total number of active borrowers using marketplace lenders in the UK now stands at around 275,000.
“Brokers often have trouble helping businesses in certain sectors. Construction, export, creative agencies, tech & software – these types of companies often find it tricky to secure finance. MarketInvoice offers a solution for these businesses, stepping in where other lenders are cutting back.”
One such company that MarketInvoice has funded is December 19, a media planning agency. When they landed a deal with a large client, they knew their cash flow would be put under pressure by the payment terms and size of the deal. Their bank was unable to extend their overdraft but MarketInvoice were able to step in and help. December 19 now use invoice finance on a selective basis to fund invoices from their largest clients.
MarketInvoice is one on the show’s main sponsors, and can be found exhibiting at stand J09.