Disruptive Finance to Power Growth. Ari Last, Partnership Development - Market Invoice.

1. Next Generation Working Capital
www.marketinvoice.com

2. WHY DO WE EXIST?
SME’s are struggling in the midst of a perfect storm.
Dominant Banks Reluctant To Lend
Dominant, Large Debtors Taking Longer to Pay
SMEs owed a record £35.3bn in late payments
in 2012
Top 6 UK banks control over 70% of business lending
Basel 3 legislation forcing banks to lend less and at
increased rates
800,000+ UK SMEs got paid late last year
Banks increasingly looking to push SMEs into Factoring
arrangements that they’re not suited to
Over 41% of SMEs say cash flow is a major barrier to
success / growth
76% rejection rate of SMEs seeking invoice finance.
Over 150 million man-hours lost chasing late payments
every year
UK SMEs
With 2-499 employees
and £1tn revenue
‚Squeezed‛
Sources: Bank of England, SME Finance Monitor, National Press, ABFA
SME Finance Monitor Q3 2011

3. WHAT DO WE DO?
MarketInvoice is an online platform that brings together:
Companies looking to raise working capital against invoices from large customers.
Global investors who advance cash in exchange for a small discount fee.
UK Government, who are investing £40m per year to SMEs through our platform.
Global Investors
Companies
Recruitment Agencies
Software Developers
Software Consultancies
Marketing Consultancies
Manufacturers
Management Consultancies
Engineering Firms
Architecture Firms
Wholesalers
Import/Exporters
… and many more
Competitive online
marketplace
SMEs sell an invoice at a
discount in return
for cash up front.
Investors compete for the
opportunity to buy the
invoice…
High Net Worth Individuals
Asset Managers
Family Offices
Investment Funds
… and others
Government
£40m fund to be channelled to
SMEs
MarketInvoice charges a small
upfront fee
SMEs get a Great Price
Government initiative - Business
Finance Partnership

4. WHY DO SMEs USE US?
Erasing Pain Points. Offering More control, choice and value.
Speed:
It takes no time to set up, and capital is advanced in 1-2 days.
Flexibility:
They use us as and when they need, selling one invoice at a time.
Transparency:
They see one cost of selling the invoice upfront, that’s it.
Peace of Mind:
No lock-in, no personal guarantees. We work on their terms.

5. CASE STUDIES
High Growth. Tech & Services-based. Exporters.
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Online retailer, supplying Amazon
Exporting to 126 countries
Payment terms of 60 days
Huge recent growth
Relative lack of trading history
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Fast growing food distributor
New large orders to fulfil
Significant upfront costs
Payment terms of 30 days
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Mobile App developer
Supplying large telecoms company
Payment terms of 60 days
Light on ‘fixed assets’

6. WHAT HAVE WE DONE?
Rapid growth and Government investment
Auction Volume (GBP thousands)
MI Trading Stats (Since Inception)
Total Volume:
Current monthly volumes:
Av. auction size:
Av. # of auctions per user:
Loss rate:
£90m
£10m+
£80k
8
0.1%
19,200
10,300
6,234
160
425
970
1,519
Q1 2011
Q2 2011
Q3 2011
Q4 2011
6,640
7,341
Q2 2012
Q3 2012
Q4 2012
3,621
Q1 2012
5,683
Q1 2013
Q2 2013
Q3 2013

7. Thank you!
www.marketinvoice.com
0845 548 0508