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

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

MarketInvoice – Key Metrics Current Monthly volume: Invoices volume traded (£ million) £30 mil £30 million+ ion+ £350 Average duration: £300 40 days 40 days £250 Default rate (Gross/Net): £200 1.5% / 0.13% 1.5% / 0.13% £150 Collection rate: 89% 89% £100 Average invoice size: £50 £60,000 £60,000 £0 2012 2012 2013 2013 2014 2014 2015 2015

Annualised returns by asset class 25% 20% 15% M M a a r r k k e e 10% t t I I n n v v o o i i c c e e Fixed income Fixed income 5% Savings accounts 0% -5% -10% -15% 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015

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

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

Transparency

Macro-transparency

Which businesses use us? High-growth, ambitious SMEs who need cash to execute on orders Seller breakdown by revenue Seller breakdown by industry Other £10m+ <£100k 13% 4% 7% £100k-£250k 16% Media, IT, Tech Services 38% 15% £1m-£10m 39% Manufacturing £250k-£500k 6% 16% Wholesale & retail £500k-£1m Construction 10% 18% 18% 30% 30% of the invoices on our 80% 80% 25% 25% of our clients have is the average annual platform are for never used invoice revenue growth of our export finance before customers

The impact of your investment