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Since Anil and MarketInvoice were last on the LFP, and no doubt as a direct result, they have gone from having done ~£1/2bn to ~£2bn and remain the Invoice Financing market leaders as well as having expanded their product range.

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Anil joins us today to discuss all things cashflow re the vital financing of UK SMEs which account for 60% of employment in the UK and over 50% of GDP.

Topics discussed on the show include:

• Anil’s skiing in Sapporo and trips to Indonesia and India
• Indonesian tech report – 350m people and Chinese tech efforts to gain market share
• MI started with one product – single invoice financing in 2011/2012; with emphasis on smaller creative/tech companies
• subsequently they expanded from “selective invoice finance” (their original product) to “confidential invoice financing” (for larger companies) and a business loan product
• thus they can now not only service small companies but can grow with them over their life cycle
• institutional funds (eg banks) are now on the platform and so they are now servicing larger companies and actually switching some from banks onto the platform
• Fintech has transformed the options for SMEs – from four main providers to over twenty
• Options for SmallCo financing:
  • self-funded via savings
  • Seed capital
  • Banking partner – credit card (overdrafts have shrunk massively as a source of financing)
  • Working-capital loans
  • Invoice financing
  • Mortgages, leasing
  • Long-term loans
  • Listing, public bond markets
• the relative need for less finance in the information age than in the industrial revolution and following; even need less money now compared to ten years ago
• the main expenditure in Fintech is on people, talent
• a move from long term unsecured debt to more asset-based finance
• over MI’s lifetime invoice based financing has grown from ~£15bn to ~£22bn
• the average size of business that is taking out invoice financing is about £10m
• how SMEs access MI through their accounting package
• business loans up to £100k
• case study of alcoholic sweets
• invoice financing 45-60 days periods
• business loans about one year
• “lending businesses need to show a track record of stable returns”
• why Fintechs growth has been constrained; slow growth of awareness, trust, track record
• return expectations from lending into P2P platforms have come down considerably
• tech backlog, and especially the challenges of preserving innovative culture as one scales
• Fintechs recruiting heavily in 2018Q1
• recruitment, partnerships and what MI need in 2018

And much much more

Share and enjoy!