Founded in 2010, MarketInvoice is a platform-based lender that is best known for its invoice finance solution. Backed by a community of investors, the platform allows businesses to borrow against the value of their debtor books. Unlike traditional invoice financiers, the MarketInvoice platform enables its business customers to invite investor to lend against specified invoices.
But as with all invoice finance products there is a degree of risk. Businesses are borrowing against bills that have yet to be paid. If a debtor is unable to make good on invoice, the borrower still owes money against a bill that will not be honoured.
Under its new partnership with Euler Hermes, MarketInvoice customers will have the option of taking out insurance that will ensure they receive money owed, even if one of their own customers fails to meet the repayment terms. In addition, MarketInvoice customers will have access to a credit checking tool designed to give them a forward view of the financial health of their debtors.
The underlying aim of this partnership is to enable companies of all sizes to trade with confidence at home or abroad,” said Ilya Kondrashov, COO and co-founder of MarketInvoice
And Kondrashov explained, the insurance offer reflects concerns about the possible impact of Brexit. “As Brexit dawns, this partnership arrangement will provide our customers with the confidence to expand sales to new buyers and markets,” he added.
Commenting on the deal from the perspective of the insurer, Euler Hermes, CEO, UK and Ireland, Milo Bogaerts said: “Businesses leaders need to plan ahead for how future risks like Brexit might impact them and their supply chains. Plus recent high profile corporate failures reinforce the need to be increasingly aware of the risks of late or non-payment for goods and services provided on credit. This is why MarketInvoice is our partner of choice to help businesses trade with confidence.”
The arrangement is the first between the insurer and a Fintech platform.