London FinTech MarketFinance has secured a £30 million credit facility from Viola, the Israeli technology investment group, to expand its B2B Pay Later embedded finance offering for SMEs.
Available in Sterling, US Dollars, and Euros, the facility will enable more online businesses to offer flexible payment terms of up to 90 days at checkout to buyers across multiple geographies.
The agreement enables MarketFinance to provide credit worth up to £240m per year on rolling 45-90-day terms to UK-based businesses.
To date, MarketFinance has made over £45m available to more than 2,000 buyers via embedded finance. With MarketFinance able to raise funds in a challenging global investment environment, and lend in local currencies, UK-based suppliers are better able to serve buyers in Europe and North America, supporting their international growth.
Viola, which has more than $4.5bn assets under management globally, has previously invested a total of £75m with MarketFinance to support the company’s entry into the business loans segment.
One company already making use of embedded finance is Nivoda, a UK-based online marketplace for diamonds serving the global jewellery industry. With buyers and sellers located all over the world, the ability to offer flexible payment and financing options in multiple jurisdictions and currencies as part of a fast and frictionless experience at checkout is vital.
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“By working with MarketFinance, we are able to offer our customers 30 and 60 days credit which helps them to better serve their customers and in turn, sell more,” said David Sutton, Nivoda’s co-founder and CEO.
“They simply choose which orders they would like credit for at checkout, and the orders are sent out immediately. Our goal is to help our customers source diamonds in the easiest and fastest way possible and to help them achieve higher profitability in their businesses.
“In a very high value item industry, MarketFinance has given companies the ability to tap credit exactly when they need it to maximise sales.”
Anil Stocker, CEO and co-founder at MarketFinance, said: “We believe embedded finance – seamlessly integrating authentication, multiple payment and pay-later options, and other value-added financial services at checkout – will bring significant benefits for SMEs over the coming years.
“In addition to receiving payment instantly, businesses tell us that offering more payment and credit options helps them stand out from the competition, and drive increased sales. As inflation continues to drive up costs and traditional financial providers struggle to fill the gap, frictionless solutions that help keep businesses moving are more needed than ever.”