Banco BNI, Varengold supply £135m to MarketInvoice

Banco BNI Europa and Varengold Bank have supplied £135m to business finance company MarketInvoice to support more companies with funding.

The agreement will see Banco BNI Europa adds £90m and Varengold Bank AG provide £45m to the platform over the next year. With this capital, MarketInvoice will look to support more UK-based businesses with working capital solutions.

This injection from Varengold, comes months after it previously injected £45m to support working capital financing to businesses on the platform.

UK-based MarketInvoice uses smart technology to provide businesses loans and invoice financing solutions. These are funded through a selection of institutional investors which includes the British Business Bank, UK local authorities, global family offices and sophisticated and HNW investors.

Last year, the company nearly doubled the average amount advanced to businesses, rising from £606,000 in 2016 to £1.4m in 2017. The average value of invoices also raised from £56,495 to £96,597. Institutional investors helped to deploy £445.7m to UK-based businesses last year.

Banco BNI Europa executive chairman Pedro Coelho said, “Their ability to deliver fast and timely funding means that our investment is being well utilised. Furthermore, with the onset of Open Banking in the UK, we expect they will get funding to companies faster, who will in turn grow, hire more people and ultimately generate economic growth.”

Banco initially made a £28.3m investment in to MarketInvoice in 2016, and then last year invested another £45m last year.

Varengold Bank AG EVP marketplace banking Lukas Diehl said, “In the year ahead, as Brexit looms, there is significant upside for MarketInvoice in all scenarios. The company is well placed to serve UK businesses providing export goods and services or those firms that are wary of the trading environment. Cashflow will be central to all businesses and MarketInvoice is well placed to service their funding needs.”

Earlier in the month, fellow invoice financing platforms Incomlend and eFundSME closed investments from GTR Ventures. The firm deployed a combined $50m in to five financing and supply chain management companies, and plans to close another five later in the year.

Banco BNI Europa chairman and CEO, Pedro Pinto Coelho, recently told FinTech Global that banks need to banks need to embrace the FinTech ecosystem and adjust to the new world through collaboration.

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