MarketFinance Secures 280M and Gets Approval for Recovery Loan...

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MarketFinance Secures 280M and Gets Approval for Recovery Loan Scheme Lending

CFO Tech Outlook | Thursday, September 30, 2021

MarketFinance introduces Flex Loans, flexible unsecured financing designed to assist SMEs in resolving day-to-day cash flow issues.

FREMONT, CA: MarketFinance, a fintech-based lending business, has conducted a £280 million debt and equity fundraise and is now registered for the government’s Recovery Loan Scheme (RLS). This follows MarketFinance’s becoming one of the first fintech companies to have its loan facility accepted under the CBILS, which lends up to £250m to businesses in the UK.

The Recovery Loan Scheme, created by the British Business Bank in April 2021, is intended to aid UK businesses in recovering and growing after the epidemic. Cashflow management, investment in new equipment, and future growth projection can all be funded using the scheme’s funds. It is made to cater to firms that can afford to increase their financial reserves to carry out these goals.

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Anil Stocker, CEO at MarketFinance, comments, “This funding and our accreditation as a Recovery Loan Scheme lender is testament to the brilliant work everyone at MarketFinance has done to serve UK businesses during a difficult period. Adapting to the increased demand from businesses looking for finance online instead of through traditional avenues also drove our profitability this year, which has continued into H2 2021.”

MarketFinance is immediately available to lend through its debt and equity capital. A significant worldwide investment business partnered with Italy’s largest bank, Intesa Sanpaolo S.p.A., to offer debt financing. Black River Ventures led the equity investment (prior investments include Marqeta, Upgrade, Coursera, and Digital Ocean), with current investor Barclays Bank PLC also participating.

Additionally, the introduction of MarketFinance Flex Loans today aims to assist roughly one million SMEs in the United Kingdom in resolving short-term financial shortfalls of up to £100,000 in size. MarketFinance has received £20 million from Viola Credit to launch the Flex Loans product. Similarly to a credit card or overdraft, firms will have a pre-agreed limit of up to £100,000 that they can withdraw in one lump sum or smaller installments. Flexible repayment options enable firms to spread their payments over three to twelve months, depending on their working capital requirements. It is a financing solution that may be used to meet several one-time and ongoing financial needs, including purchasing merchandise, paying outstanding invoices, making upfront supplier payments, investing in sales and marketing, and expanding the workforce.

Anil Stocker adds, “Businesses have been resilient and managed to hold their nerve during one of the most difficult periods in recent history. We were there to help with the CBILS and will do the same with the RLS by offering a simple application process, quick decisions and sending funds to businesses immediately. Our fundraise puts us in pole position to do this. We played a key role during CBILS, as one of the first fintech lenders, to help get funds to businesses quickly when they found their applications were delayed and or denied by others. We will stand shoulder to shoulder with businesses and help navigate them through to the full reopening of the economy and beyond.”

Businesses can now apply immediately for a MarketFinance RLS loan of up to £250k repayable over four, five, or six years. Over the first six months, repayments will entirely comprise interest charges, an additional measure of help while firms prepare for a complete economic rebirth.

The MarketFinance platform, as a native fintech, is designed to receive, process, and handle vast quantities of business applications for financing via the platform. MarketFinance's straightforward online application forms, better credit risk models, and great one-on-one client care ensure that RLS funds are immediately available to businesses in need.

“We aim to quickly lend to businesses around the UK. We anticipate demand for RLS to come from companies that will need capital to scale operations ahead of the full reopening of the economy. Manufacturers, wholesalers, public services businesses and a range of others will need the funds to ramp up supplies and build pipelines as business returns to normal,” concludes Anil Stocker.

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