4th November 2014
The Greater Manchester Combined Authority (GMCA) and leading peer-to-peer lender MarketInvoice have today announced a major partnership to fuel growth and job creation for Greater Manchester businesses.
Through the partnership the GMCA will buy invoices owed to Greater Manchester businesses in order to release money otherwise tied-up for 30 to 120 days.
Businesses use MarketInvoice to sell their long-dated invoices direct to investors – now including the GMCA – and use the money to hire new staff, export to new markets, and fuel growth. The GMCA will buy up to 50% of all invoices traded by local companies on MarketInvoice.
With funds on MarketInvoice recycled every 45 days the £2m deployment will equate to around £16m of investment in Manchester businesses over a twelve month period.
MarketInvoice recently opened a new office in Manchester, making it the first peer-to-peer lender to expand into the North West.
Anil Stocker, CEO and Co-Founder of MarketInvoice said:
“Businesses looking to take advantage of the fast growing economy can use MarketInvoice as rocket fuel to propel them forwards. Greater Manchester is a hotbed of business opportunity right now, and it’s great that the GMCA is taking an active role in accelerating the success of the region’s businesses.
“This investment in Greater Manchester businesses from one of the country’s most forward thinking Authorities sits alongside private sector funds representing a great example of public and private sectors working together for the benefit of the economy.
“Together we can help make Manchester a northern powerhouse.”
Council leader Sir Richard Leese CBE said:
“MarketInvoice is leading an innovative group of new, online business finance providers. This partnership enables the GMCA to put money straight into fast growing local businesses. We’ve seen how this kind of working capital finance can be a catalyst for creating new jobs, exporting into new markets, and growing successful businesses, so we’re excited to be a part of it.
“Our funding will be placed directly into local businesses, helping to ensure Greater Manchester businesses – and the region as a whole – can capitalise on the growing economy.”
Mike Blackburn, chair of the GM LEP said:
“This investment offers a unique way for the combined authority to contribute to the prosperity of a multitude of Greater Manchester-based businesses.
“By releasing monies that would otherwise be tied-up in the short-term, it will allow quicker access to available finance – through its very online nature –and directly support local growth and job creation.”
How the partnership works:
The GMCA will automatically purchase 50% of invoices traded on MarketInvoice by companies based in the Greater Manchester area. The British Business Bank investment takes on the next 25%, and the remaining 25% is made available to private investors. Businesses can access the funding within hours of application.
This is the second commitment of public funds through the MarketInvoice platform. In August 2013, the UK Government, through the British Business Bank, began using MarketInvoice to invest directly in UK businesses, with a commitment of £5m, which represented a £40m investment in businesses per year.
Aura Healthcare is a software company working in the healthcare sector. It employs 35 staff mostly at its head office in Salford. Its turnover is more than £2m per year. Aura Healthcare is revolutionising an old industry with new technology, and experiencing rapid growth as a result.
Sales in healthcare are extremely seasonal in line with healthcare budgets and spending patterns – this can create a barrier for new companies to compete. Aura Healthcare uses MarketInvoice to smooth the peaks and troughs of its sales cycle, enabling it to fund growth throughout the year, they have traded over £1m of invoices through the platform. Managing Director Mark Hindle says, “MarketInvoice has helped shape our business and given us the confidence to make the bold decisions needed to fuel growth.”
For further information, please contact:
020 3757 8420
Press Office Manager, Manchester City Council
0161 234 1010
About MarketInvoice (http://www.marketinvoice.com) Businesses use MarketInvoice to selectively sell their invoices to a network of global investors. The online platform is a working capital solution, giving businesses immediate access to funds otherwise tied up for between 30 to 120 days. Launched in 2011, MarketInvoice has helped hundreds of businesses overcome the lengthy payment terms of their large customers. More than £270m has been raised through the platform, with businesses using the funds to hire more staff, launch new products and pay their suppliers. MarketInvoice is a new type of peer-to-peer funding solution, accessible to a wide range of UK businesses.Businesses are able to sell single or multiple invoices online, only as and when they need to. There are no contracts, hidden fees or personal guarantees; new clients can sign up, sell an invoice and draw down funds on the same day. Invoices are funded by a global pool of investors including high net worth individuals. In August 2013, the UK government began investing in small business invoices via MarketInvoice through the British Business Bank. This initiative will see £40m channelled through the platform over a 12 month period.
About Greater Manchester Combined Authority
The Greater Manchester Combined Authority is a unique model of governance for a city region, provided for by the Local Democracy, Economic Development and Construction Act 2009. Whilst it builds on the AGMA model of voluntary collaboration between local authorities through a Joint Committee, the GMCA is a statutory body with its functions set out in legislation. These functions, which cover the Greater Manchester area, include all the transport functions previously overseen by GMITA, plus some economic development and regeneration functions.
The Greater Manchester Combined Authority has established an investment framework, the Greater Manchester Investment Fund (GMIF), which is unique in that investments are prioritised towards driving growth in the region with a particular focus on creating or safeguarding jobs. GMIF is a virtual pool of Regional Growth Fund and Growing Places monies. It is closely linked to other funds such as the Evergreen Fund and GM Loans fund which deliver similar objectives
Greater Manchester Investment Fund
Greater Manchester Investment Fund is the approach the Greater Manchester LEP is using to help deliver the next phase of economic growth in the region in line with the Greater Manchester Strategy. The ten local authorities in Greater Manchester are working to deliver a single investment strategy, which is underpinned by the availability of a range of financial support mechanisms. These include the Regional Growth Fund (RGF) Rounds 2 & 3 and Growing Places Fund. For More information on this please see our website.