Invoice financing is a booming business in the U.K. Data released over the weekend by the Asset Based Finance Association said more than $943 million worth of invoice financing reached SME borrowers in just the first quarter of 2016, marking a 63 percent increase over the same period of 2015.
It may come as no surprise, then, that venture capitalists are paying attention to invoice financing startups.
On Monday (July 18), one of those startups announced a $9.55 million funding round led by MCI Capital, based in Poland, via its MCI.TechVentures Fund, reports said.
MarketInvoice revealed its funding, which also saw participation from existing backer Northzone. The company said it will use the funds to strengthen its top position in the U.K. market and to focus on product development; reports added that MarketInvoice is considering expanding its staff.
The company, based in London, has been focusing on expansion for some time, announcing plans in 2014 to begin reaching further across Europe.
In an interview with PYMNTS earlier this year, MarketInvoice explained that the problem of late payments is forcing small suppliers to gain a better grasp of their cash flow and find liquidity while waiting to get paid — precisely the point of invoice financing. The company released data that examined which markets are suffering the most from late invoice payments.
In the U.S., about half of invoices are paid late, MarketInvoice found, adding that it would also be exploring an entrance into the U.S.