MarketFinance lands £280m and COVID recovery approval
Business lender MarketFinance has secured a £280 million debt and equity fundraise and will form part of the government’s efforts to shore up the UK economy in the wake of the pandemic.
The British Business Bank’s Recovery Loan Scheme will support UK business
The fintech’s accreditation under the Recovery Loan Scheme (RLS) follows its accreditation under the Coronavirus Business Interruption Loan Scheme (CBILS), under which it lent £250 million to UK companies.
Launched by the British Business Bank in April 2021, the RLS provides funding for businesses struggling with cashflow, or for those who want to invest in new equipment and prepare for future growth.
MarketFinance says it is ready to lend immediately, with debt financing provided from a large global investment firm alongside Italy’s largest bank, Intesa Sanpaolo.
The equity investment was led by Black River Ventures with participation from existing investor, Barclays Bank.
Additionally, MarketFinance has launched Flex Loans — with £20 million provided by Viola Credit — which acts as an overdraft for close to one million UK SMEs in order to help them close short-term funding gaps up to £100,000.
Businesses can spread repayments over three to 12 months depending on their working capital.
MarketFinance CEO Anil Stocker says these funding options and the RLS accreditation builds on demand for finance sought online during the pandemic rather than through traditional channels.
“We anticipate demand for RLS to come from companies that will need capital to scale operations ahead of the full reopening of the economy. Manufacturers, wholesalers, public services businesses and a range of others will need the funds to ramp up supplies and build pipelines as business returns to normal,” Stocker says.
