Why lend to small businesses? Why lend to small businesses? Anil - - PowerPoint PPT Presentation

▶

Sep 12, 2022 394 likes •515 views

Why lend to small businesses? Why lend to small businesses? Anil Stocker Co-founder & CEO at MarketInvoice @marketinvoice @anilstocker How it works Businesses (Sellers) Investors (Buyers) Revenues <100m HNW

SLIDE 1

Why lend to small businesses? Why lend to small businesses?

Anil Stocker Co-founder & CEO at MarketInvoice @marketinvoice @anilstocker

SLIDE 2

How it works

Businesses (“Sellers”) ü Revenues <£100m ü B2B, long payment terms ü Little fixed capital Investors (“Buyers”) ü HNW ü Corporates ü Hedge Funds Benefit to Companies ü Flexibility ü Transparency ü Scalable source of funds Benefit to Investors ü Secured yield (5-7% p.a.) ü Highly liquid ü Uncorrelated

SLIDE 3

MarketInvoice – Key Metrics

£0 £50 £100 £150 £200 £250 £300 £350 2012 2012 2013 2013 2014 2014 2015 2015

Invoices volume traded (£ million)

Current Monthly volume: £30 mil £30 million+ ion+ Average duration: 40 days 40 days Default rate (Gross/Net): 1.5% / 0.13% 1.5% / 0.13% Collection rate: 89% 89% Average invoice size: £60,000 £60,000

SLIDE 4

0% 5% 10% 15% 20% 25% 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015

Annualised returns by asset class

Savings accounts Fixed income Fixed income M a r k e t I n v

c e M a r k e t I n v

c e

SLIDE 5

Small business data ecosystem

// //BANK ST BANK STATEMENT ANAL TEMENT ANALYSIS YSIS // //SOCIAL & ONLINE PROFILING SOCIAL & ONLINE PROFILING // //DIRECTOR HISTORIES // //INDUSTRY/ FIRMOGRAPHICS

SLIDE 6

Investor choice

Choose what to lend for: Choose what business type: // // Working Capital // // Term loans // // Trade finance // // Bridging loans // // Development finance // // Asset finance // // Years trading // // Turnover size // // Export // // Legal structure // // Industry sector // // Customers

SLIDE 7

Transparency

SLIDE 8

Macro-transparency

SLIDE 9

Which businesses use us?

High-growth, ambitious SMEs who need cash to execute on orders

f our clients have

never used invoice finance before

80% 80%

is the average annual revenue growth of our customers

25% 25%

f the invoices on our

platform are for export

30% 30%

Seller breakdown by revenue

<£100k 7% £100k-£250k 16% £250k-£500k 16% £500k-£1m 18% £1m-£10m 39% £10m+ 4%

Seller breakdown by industry

Media, IT, Tech 38% Construction 18% Wholesale & retail 10% Manufacturing 6% Services 15% Other 13%

SLIDE 10