Varengold Bank AG is set to provide £45m annually to UK SMEs via the invoice finance platform MarketInvoice.
Through this finance, the German private bank will fund working capital solutions for businesses across the UK.
MarketInvoice has seen more than a four-fold increase in sums advanced to UK businesses from institutional investors via its platform, from £27.8m in 2014 to £116.3m in 2017.
Cumulative funding from institutions currently stands at 296.2bn.
“We have been looking at the fintech sector for some time,” said Dan Walker, head of London office at Varengold Bank AG.
“MarketInvoice and its peer-to-peer invoice finance platform presented a fitting opportunity for us.
“In particular, we were attracted by their products, approach to risk management and ambition for growth.”
MarketInvoice has noticed an increased interest in its platform from global institutions and a rise in funding levels since the launch of MarketInvoice Pro.
“Institutions have played a significant role in our growth story and over the past few years,” said Anil Stocker, CEO and co-founder of MarketInvoice.
“This commitment from Varengold is further proof of our ability to provide finance to high-growth businesses across the country, we're excited by their support of our mission.
“We look forward to building on this relationship as we scale into larger funding lines through our new MarketInvoice Pro product.”
The partnership with Varengold comes as MarketInvoice celebrated reaching £1.5bn in funding to UK businesses.
“This is a huge milestone for us as a funding platform.
“We started the company to provide businesses with choice, flexibility and an easy-to-use funding solution,” added Anil.
“Companies have been able to access funding from £10,000-3m against invoices to fund their working capital, which is vital to the success of small companies dealing with growing orders and long payment terms.
“This funding has supported fast-growing companies to launch new products, hire more staff and export to new markets.”
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