MarketFinance offers fast business loans and invoice finance. Understanding their eligibility criteria helps UK SMEs access the right funding.
General Eligibility Criteria for SMEs
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Business Type: Primarily serves Limited Companies and LLPs registered in the UK.
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Trading History: Businesses typically need a minimum trading history, often at least 12 months, with established revenue streams.
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Turnover: Minimum annual turnover requirements apply, often starting from £100,000, varying by product (e.g., invoice finance vs. loans).
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Creditworthiness: MarketFinance assesses the business's financial health and credit history, as well as potentially the directors' credit profiles.
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Invoice Finance Specifics: For invoice finance, businesses must issue invoices to other businesses (B2B) with standard payment terms.
Information & Documentation Needed:
The online application is streamlined, but be prepared to provide:
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Company Information: Registered name, company number, address, director details.
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Financial Data: Option to securely link accounting software (Xero, Sage, QuickBooks etc.) or business bank accounts via Open Banking for faster assessment. Alternatively, upload recent management accounts, filed accounts, and bank statements.
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Invoice Details (for Invoice Finance): Information about your sales ledger, customer payment terms, and examples of invoices may be required.
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Loan Purpose (for Business Loans): Clear details on how the loan funds will be utilized.
Application Process
MarketFinance offers a fast, technology-driven application:
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1. Online Application: Complete a short online form on the MarketFinance website, indicating the type of finance needed and basic business details.
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2. Data Connection/Upload: Securely link your business bank account or accounting software, or upload necessary financial documents.
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3. Rapid Assessment: MarketFinance's platform analyzes the provided data quickly to assess eligibility and determine potential offers.
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4. Decision & Offer: Receive a decision, often within 24-48 hours. Approved businesses get a clear offer outlining terms, rates, and fees.
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5. Funding: Upon acceptance and final checks, funds are transferred quickly – often within 24 hours for invoice finance drawdowns or a few days for loans.
Finance Terms and Conditions
Key terms vary between Business Loans and Invoice Finance:
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Business Loans: Amounts £10k-£500k, terms 1-4 years, fixed interest rates + potential arrangement fee. Early repayment options may be available (check terms).
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Invoice Finance: Advance up to 90% of invoice value. Fees typically include a discount charge (interest on funds advanced) and a service fee. Flexible drawdown and repayment linked to invoice payments.
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Security: Business loans are typically unsecured but may require personal guarantees. Invoice finance is secured against the business's sales ledger (invoices).
Who Is MarketFinance Best For?
MarketFinance solutions are particularly suitable for:
B2B Businesses needing cash flow:
Companies that invoice other businesses and face delays in payment can use invoice finance to bridge cash flow gaps quickly and reliably.
Learn more: Understanding invoice finance for SMEs
Established SMEs seeking growth capital:
Businesses with a solid trading history looking for fast, unsecured loans to fund expansion, new projects, or investments.
Learn more: Funding strategies for SME growth
Companies using modern accounting software:
Businesses using platforms like Xero, Sage, or QuickBooks can benefit from seamless data integration, speeding up the application and ongoing management.
Learn more: Benefits of accounting software integration for finance
To enhance your chances of approval with MarketFinance:
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Utilize Data Linking: Connecting your bank accounts and accounting software provides the richest data for assessment and typically leads to the fastest decisions.
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Maintain Good Financial Records: Ensure your accounts and bank statements are accurate, up-to-date, and clearly reflect your business's performance.
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Check Business Credit Health: Review your business credit report and address any issues before applying.
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Be Clear on Funding Use: Articulate clearly how the requested finance (loan or invoice finance facility) will be used to support or grow the business.
