Two European banks will funnel a combined $191 million in business loans through the U.K. marketplace loan platform MarketInvoice, according to Reuters reports on Monday (March 26).
Portugal’s Banco BNI Europa and Germany’s Varengold Bank AG will provide the trade financing via MarketInvoice’s portal. According to the alternative lender, it has seen a three-gold increase in financing provided by institutional investors since 2014, highlighting the rising collaboration between traditional and alternative financial service providers.
“The volume and value of invoices we’re funding is higher than ever,” said MarketInvoice CEO and Co-Founder Anil Stocker in a statement. “Our growing institutional investor base on the platform has enabled us to support a broader pool of businesses.”
According to Reuters, institutional investors provided more than a third of peer-to-peer (P2P) property loans, 28 percent of P2P business loans and 32 percent of P2P consumer loans last year.
“The MarketInvoice model has proven itself to be a dynamic marketplace servicing a vast [swath] of businesses,” said Varengold Bank Executive Vice President of Marketplace Banking Lukas Diehl, adding that the decision to increase business funding via MarketInvoice was “straightforward.”
Last year, Banco BNI Europa Executive Chairman Pedro Coelho said in a statement that it is “inevitable that banks will work more collaboratively with FinTech businesses.”
At the time, MarketInvoice’s Stocker emphasized the relationship with traditional financial service providers.
“Institutions have played a significant role in our growth story and over the past two years have consistently funded almost 60 percent of the working capital provided to U.K. businesses via MarketInvoice,” he stated. “This new commitment from BNI 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.”
MarketInvoice is also collaborating with other FinTechs and B2B service providers. Earlier this year, the company struck a deal with Euler Hermes to integrate credit insurance policies into its offering.