LFP098 – Financing UK Small Businesses with Anil Stocker CEO MarketInvoice

Since Anil and MarketInvoice were last on the LFP, and no doubt as a direct result, they have gone from having done ~£1/2bn to ~£2bn and remain the Invoice Financing market leaders as well as having expanded their product range.

Anil joins us today to discuss all things cashflow re the vital financing of UK SMEs which account for 60% of employment in the UK and over 50% of GDP.



Topics discussed on the show include:

  • Anil’s skiing in Sapporo and trips to Indonesia and India
  • Indonesian tech report – 350m people and Chinese tech efforts to gain market share
  • MI started with one product – single invoice financing in 2011/2012; with emphasis on smaller creative/tech companies
  • subsequently they expanded from “selective invoice finance” (their original product) to “confidential invoice financing” (for larger companies) and a business loan product
  • thus they can now not only service small companies but can grow with them over their life cycle
  • institutional funds (eg banks) are now on the platform and so they are now servicing larger companies and actually switching some from banks onto the platform
  • Fintech has transformed the options for SMEs – from four main providers to over twenty
  • Options for SmallCo financing:
    • self-funded via savings
    • Seed capital
    • Banking partner – credit card (overdrafts have shrunk massively as a source of financing)
    • Working-capital loans
    • Invoice financing
    • Mortgages, leasing
    • Long-term loans
    • Listing, public bond markets
  • the relative need for less finance in the information age than in the industrial revolution and following; even need less money now compared to ten years ago
  • the main expenditure in Fintech is on people, talent
  • a move from long term unsecured debt to more asset-based finance
  • over MI’s lifetime invoice based financing has grown from ~£15bn to ~£22bn
  • the average size of business that is taking out invoice financing is about £10m
  • how SMEs access MI through their accounting package
  • business loans up to £100k
  • case study of alcoholic sweets
  • invoice financing 45-60 days periods
  • business loans about one year
  • “lending businesses need to show a track record of stable returns”
  • why Fintechs growth has been constrained; slow growth of awareness, trust, track record
  • return expectations from lending into P2P platforms have come down considerably
  • tech backlog, and especially the challenges of preserving innovative culture as one scales
  • Fintechs recruiting heavily in 2018Q1
  • recruitment, partnerships and what MI need in 2018

And much much more 🙂

Share and enjoy!