exploring the world of alternative finance | accountex 2015

A new way to fund working capital

MarketInvoice @Accountex 2015

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Seminar overview

1. The rise of alternative finance

2. The MarketInvoice solution

3. Client case study

4. Sage integration – demo

5. A tool for growth

6. Pricing

7. Working with accountants

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The rise of alternative finance

Explosive growth but awareness still extremely lowHuge growth but low awareness

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Accountants have a major role to play

88% of SMEs who made a loan application did so with their bank

31% of overdraft applications were initially rejected

61% of loan applications were initially rejected

43% of SMEs looking to borrow from banks for the first time were rejected

SME’s need educating about alternatives to their bank

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MarketInvoice snapshot

£380 million funded in 4 years, 220% volume growth in 2014

£40m of available investor funds, including £6m from the UK Government and the Greater Manchester Combined Authority

Working with hundreds of accountants in the UK

Integrations with Sage 50 and other online accounting platforms

Widespread media coverage and numerous industry awards

We are the most advanced, fastest-growing invoice finance platform in the largest invoice finance market in

the world

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The problem…

Banking retrenchment

• General withdrawal of overdrafts to smaller SMEs

• High rejection rate of SME loan applications

Long payment terms

• Businesses consistently owed over £30bn in late payments

• Over 41% of businesses say cash flow is a major barrier to success / growth

MarketInvoice can help your clients get out of the three-pronged credit squeeze

• Banks’ invoice finance product is inflexible; expensive; onerous and complex

• Only ~5% of UK SMEs use traditional invoice finance as a result

Banking retrenchment

Long payment terms

Maligned invoice finance

UK SME’s facing stunted growth and are turning away trade

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The solution…

Register, sell invoices and

receiving funds in 24 hours.

No personal guarantees or requirements

for debentures.

See exactly what they'll pay before selling each invoice.

Use us selectively. Only

as and when they need to. No

contractual lock-in

FLEXIBILITY SPEED STRESS-FREE TRANSPARENCY

$€ £

More control, choice and value

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How it works

• MI targets, on-boards, and grades businesses who then list eligible invoices on the MI platform for funding

• MI advances funds held by investors on the MI platform, according to their risk/return preferences

• 30-90 days later, the end customer pays the invoice. MarketInvoice returns funds and fees to investors and settles transaction

Global private investors

• High-net-worth individuals

• Asset managers

• Family offices

• Investment funds

Public institutions

• British Business Bank (£40m annually)

• Other public institutions (~£16m annually)

Buyers

Our business customers span many sizes, stages and sectors:

• High-growth businesses with turnover between £100k–£100m

• Client funding invoices of all sizes, to debtors of all sizes

• 80% of our clients have never used invoice finance before

Sellers

1

2

3

A proprietary technology platform, fuelling SME growth

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Customer case study: Scaramouche & Fandango

MI advances remaining

15% to S&F

S&F customers submit

payment(via MI client

account)

• Scaramouche & Fandango (“S&F”) manufactures high-end men’s bath and body care products, supplying retailers in the UK, USA and Europe

• Customers operate on 60–90 day payment terms, so S&F uses MarketInvoice for working capital

Day 1: Sale

Day 60+: Payment

MI advances 85% of invoice value to S&F; S&F reinvests funds to grow

business

MI verifies invoice

Scaramouche & Fandango ships product

to retailers

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Fast & simple sign-up process

15-minute online sign-up – supercharged by accounting integrations

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Best-in-class customer experience

2015 award for customer experience

4%

18%

79%

3 stars4 stars5 stars

15-minute online signup – supercharged by accounting integrations e.g. Sage 50

Seamless risk assessment powered by integrations with Experian, Companies House and social media

10-minute response time to new enquiries

Application-to-funding in as little as 24 hours

Award-winning customer service

A product your clients will love

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A new product for growing companies

of our clients have never used invoice finance before

Our customers exhibit average annual revenue growth of

~25% of the invoices on our

platform are for export

30%

Customers by industry

Energy & utili-ties

Marketing & media

TechnologyConstruction &

engineering

Professional services

Consumer products

Industrials & infrastructure

Healthcare

80%

A growth-acceleration tool for some of the best businesses in the UK

Order more stock

Pay suppliers earlier

Offer credit terms to win new customers

Hire more staff

Launch marketing campaigns

Enter new markets

Using funds to:

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Transparent, simple, competitive fees

Total cost of funding to businesses is on average 2.5 – 3% of invoice value.

Only 2 fees. A processing fee to MarketInvoice and an interest rate to investors.

Pricing gets cheaper the more a company trades.

*Cost calculator on MarketInvoice website

Simple, competitive pricing that gets better the more a customer trades

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In partnership with accountants

An innovative, seamless service – that you control

• Mange the entire application process for your client

• Use Sage 50 integration to apply and trade instantly

• Monitor complete trading activity online, in real time

• Grow your brand and educate your client-base in partnership with MI

Register as a partner online

Apply & trade via Sage 50

Monitor activity online

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Any questions?

www.marketinvoice.com/introducersa.last@marketinvoice.com

0203 697 9431