MarketFinance banks additional £50m from institutional investor as it ramps CBILS support for SMEs

Fintech business lender MarketFinance has secured an additional £50m from a range of investors including one of Israel’s largest asset managers, Viola Credit, to lend to UK SMEs under the HM Treasury and British Business Bank CBILS initiative.

The announcement comes as MarketFinance launches a ‘unified application’ process in which SMEs will, through one application, be presented with a variety of finance options and be able to select those best suited to their needs. MarketFinance is now able to offer a combination of business loans, invoice finance and revolving credit facilities through this single application journey.

The CBILS initiative will conclude at the end of September 2020 with pre-submitted applications in September being valid until the end of November.

In readiness to service the last minute dash for CBILS loans or revolving credit facilities, MarketFinance has secured this additional funding of £50m to support SMEs with their working capital at this crucial time. Since 2011, Institutional investors such as banks, asset managers and family offices have provided the majority (70%) of capital that MarketFinance lends out to businesses.

Anil Stocker, CEO at MarketFinance, commented: “Only 60,409 CBILS facilities have been approved since the pandemic started, versus 1.2 million Bounce Back Loan approvals. This shows there are many businesses who could still benefit from accessing CBILS finance before the scheme ends. For many who took a Bounce Back Loan, there is now a short window where they can refinance onto a larger CBILS facility which could see them over to the new year. Vast swathes of the UK SME community haven’t applied or remain unaware of the CBILS initiative and that it concludes in a few weeks. By lining up this additional funding, we want to send a strong signal to the market that MarketFinance is here to help.”