MarketFinance Business Loans and Invoice Financing

MarketFinance is an online provider of invoice finance, recovery loans and business loans in the UK. It has grown to become one of the largest invoice financing providers in Europe, financing businesses with over 2 billion worth of finances and business loans.

What’s Special About MarketFinance

  • MarketFinance was the first company to allow businesses to borrow against individual outstanding invoices. You can get funding from a single or handful of debtors.
  • MarketFinance is an accredited Recovery Loan Scheme lender. The scheme supports access to finance for UK businesses as they recover and grow following the COVID-19 pandemic.
  • It has no setup or activation fee and no charge for early repayment.
  • You can request and receive funds on the same day.
  • MarketFinance offers up to £100,000 of working capital to withdraw whenever you need it.

MarketFinance Loan Products

MarketFinance provides two products in the market. They include business loans and invoice finance.

  • Business Loans. Market Finance provides businesses with business loans of up to 250,000 with interest rates starting from 1.4% per month. It does not charge an activation fee and no prepayment penalties. To qualify for a business loan with Market Finance, your business must have been trading for the last one year.
  • Invoice Finance. Your business can get invoice finance against outstanding customer invoices of up to 90%. You can get it within 24 hours and it is available in three options; selective invoice discounting, confidential invoice discounting and contract finance.

MarketFinance Business Loans

MarketFinance offers fixed-rate unsecured peer-to-peer loans. You can get a business loan of between 5,000 and 250,000. The loan duration is between 6 months and 3 years and comes with a fixed rate. You can receive the funds in the account within 48 hours. You will need a personal guarantee to get a business loan.

MarketFinance Business Loan Eligibility Requirements

To qualify for a MarketFinance business loan, your business must:

  • Have a minimum trading turnover of £50,000
  • Minimum trading requirements of at least 2 years
  • Your business must be based in the UK
  • Your business Limited company, Limited Liability Partnership or a Public limited company

MarketFinance Invoice Finance

MarketFinance Invoice Finance Eligibility Requirements

To become eligible for MarketFinance, your business needs to have met the following qualifications.

  • It must have a minimum turnover of £100,000
  • A minimum trading requirement of at least 1 year
  • It must be a Limited Company or a Limited Liability Partnership
  • Your business must be based in the UK
  • Business directors must not be bankrupt or subject to personal insolvency

MarketFinance Invoice Options

MarketFinance provides three invoice financing options. They include:

  • Selective invoicing discounting. You need to upload invoices that you want to borrow against on Market Finance website and they will verify your invoice. They will then pay 90% of its value apart from the fees within just 24 hours. Your business must be a limited company or limited liability partnership. It should also have an annual turnover of at least £100,000.
  • Contract Finance. Market Finance allows you to borrow against the value of future contracts. Your business must be a limited company or LLP and have at least £300,000 turnover. You must then provide two years trading history and then have contracts with UK companies with at least 6.5 million turnover p.a.
  • Confidential invoice discounting. You need to allow Market Finance connect to your accounting software. If your business is eligible, you can borrow against all your unpaid invoices. Market Finance will then open a Barclays Business bank account for your business. Then, all your clients will need to channel all invoices through the bank account. Market Finance will also deposit finds into the same account depending on the information that you gave. You must then provide two years trading history and also an accounting software that is supported by MarketFinance.

MarketFinance Fees

MarketFinance charges fees as a percentage of the amount borrowed. The percentage charged depends on the size of your business, due date and type of loan. Normally, fees range between 1% and 3% of your invoices’ values. Then, you will be offered a quote before each transaction, known as pay-as-you-go before you can sign a contract.

Is MarketFinance Safe?

MarketFinance is not regulated by the Financial Conduct Authority and it operates in invoice finance. However, MarketFinance is a member of the peer-to-peer Finance Association that regulates financial services in the UK.

MarketFinace Features

MarketFinance offers excellent services and has the following features:

  • Simple and intuitive user interface
  • Quick application process and you can get funds into your account within 24 hours
  • Get a cash advance of up to 90%
  • Excellent customer support through email and telephone
  • There are no hidden fees

MarketFinance Reviews

Althought MarketFinance claimed its Trustpilot profile in 2014, the company had only 403 reviews and a rating of 4.5 at the time of writing. See MarketFinance reviews on Trustpilot here.

MarketFinance Alternatives

Conclusion on MarketFinance Review

If your business has been trading for over 1 year and has at least a minimum turnover of £100,000 and you are looking for business loan, recovery loan or invoice finance, consider MarketFinance. They charge an interest rate of between 1% and 3%. You can also get cash advance of up to 90%.

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