British Peer-to-peer United States Alliance! Target: Unpaid invoices!

The UK Peer-to-peer loan market has embarked on a market clean-up following the arrival of US investors in a move to finance the company's unpaid bills and invoice discounting.

The American Alternative Financing (alternative finance) provider "interface Finance Group" (IFG) has established a joint venture with Assetz Capital, a UK peer-to-peer lender. They use the company to buy invoices at lower prices from businesses and then charge them when they are paid. This process is usually within 60 days. This behavior can allow companies to quickly withdraw cash, but for investors is considered to be low-risk, because most of the invoices have been paid.

The Assetz, based on Stockport, has 6,500 investors and has lent about million in the past 18 months. They plan to diversify the risk by offering a pound of minimum investment risk and pooling large amounts of corporate invoices to raise funds. It will return a specific invoice discount product, about 5% to 7% a year, and a contingency fund to cover the losses.

Assetz's chief executive, Stuart, said: "Our software allows us to automatically diversify our investments to reduce risk." Both companies and investors have a huge demand for this management solution. ”

As a franchise network, IFG operates 150 office services companies across North America, Europe, Australia, New Zealand, South Africa and Singapore.

Mr Law says the link with IFG is one of the first cases to match peer-to-peer and traditional loans, and others will follow suit. "They benefit from our Low-cost capital and platform, and we profit from their management experience of size and loss." ”

Both MarketInvoice and platform were established in 2011, and they are all suppliers of the UK's important Peer-to-peer network of invoice financing. They select investors through a minimum investment demand of 50,000 pounds and a specific auction invoice. So far, platform's invoice volume has reached £ 83 million and MI turnover has exceeded 300 million pounds. He is expected to reach another 300 million pounds in the second year.

There are dozens of traditional invoice discount stores, many of which belong to the big banks. As a state-backed wholesale lender, British Commercial Bank (Airways Business Bank) has been trying to encourage new entrants and has borrowed 5 million of loans through MarketInvoice.

When the Manchester Parliament pledged 2 million pounds in November, the board and pension funds were also considering investing in the platform.

British Commercial Bank said that from this year to October 2014 Peer-to-peer invoice financing has 220 million pounds, which is the double in 2013. Outstanding invoice financing stock exceeds 19 billion pounds.

Anil Stocker, co-founder of MarketInvoice, said investors received about a 12% return. However, with a default rate of 1.9%, around 90% per cent of the bad debts recovered.

Source: Gold Rating Media

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