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Posted on August 2, 2018 by staff

Barclays hails ‘landmark’ FinTech deal

Barclays has agreed to acquire a minority stake in FinTech company MarketInvoice as part of a “landmark” new partnership with the online invoice financing platform.

The deal has been touted as the first FinTech-bank collaboration in the UK that is set to help business banking customers access finance.

According to Barclays, the partnership will “transform” the way SMEs in the UK manage cash flow and accelerate growth, and is a key part of its plans to invest in new business models for growth.

“It’s exciting to be combining the knowledge and footprint of a 325-year old British banking institution with MarketInvoice’s tech-led online finance solutions,” said MarketInvoice chief executive Anil Stocker.

He added: “It’s easy to forget that the companies you see on the FTSE 100 all started as small businesses with founders following a passion.

“In focusing on the needs of these entrepreneurs through this collaboration, Barclays and MarketInvoice will truly transform the experience of UK companies in sourcing finance.”

Founded in 2011, MarketInvoice has funded invoices worth more than £2.7 billion, boosting cash flow for thousands of UK businesses.

Barclays is the first high street bank to enter into a strategic partnership with the company.

Ian Rand, CEO of Barclays Business Bank, added: “Invoice finance is a product that has come of age in the digital era, it’s efficient, effective and controllable for small businesses.

“A number of our clients told us that they feel pressured into offering longer payment terms in order to stay competitive. This ties up their cash flow, preventing them from seizing growth opportunities.

“Invoice financing gives small businesses the power to obtain funding in a fast and innovative way, and capitalise on those moments. Our corporate bank already offers invoice financing to large businesses, so it’s great news that we’re able to extend the proposition to work for our SME clients as well.”