Next Generation Working Capital

SP16NOV2011

www.marketinvoice.com

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WHY DO WE EXIST?

SME’s are struggling in the midst of a perfect storm.

Dominant Banks Reluctant To Lend

Top 6 UK banks control over 70% of business lending

Basel 3 legislation forcing banks to lend less and at increased rates

Banks increasingly looking to push SMEs into Factoring arrangements that they’re not suited to

76% rejection rate of SMEs seeking invoice finance.

Dominant, Large Debtors Taking Longer to Pay

SMEs owed a record £35.3bn in late paymentsin 2012

800,000+ UK SMEs got paid late last year

Over 41% of SMEs say cash flow is a major barrier to success / growth

Over 150 million man-hours lost chasing late payments every year

UK SMEsWith 2-499 employees

and £1tn revenue“Squeezed”

Sources: Bank of England, SME Finance Monitor, National Press, ABFASME Finance Monitor Q3 2011

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MarketInvoice is an online platform that brings together:

Companies looking to raise working capital against invoices from large customers.

Global investors who advance cash in exchange for a small discount fee.

UK Government, who are investing £40m per year to SMEs through our platform.

Global Investors

High Net Worth Individuals

Asset Managers

Family Offices

Investment Funds

… and others

CompaniesRecruitment Agencies

Software Developers

Software Consultancies

Marketing Consultancies

Manufacturers

Management

Consultancies

Engineering Firms

Architecture Firms

Wholesalers

Import/Exporters

… and many more

Competitive online marketplace

SMEs sell an invoice at a discount in return for cash up front.

Investors compete for the opportunity to buy the

invoice…

MarketInvoice charges a small upfront fee

SMEs get a Great Price

Government£40m fund to be channelled

to SMEs

Government initiative -

Business Finance

Partnership

WHAT DO WE DO?

Speed:It takes no time to set up, and capital is advanced in 1-2 days.

Flexibility: They use us as and when they need, selling one invoice at a time.

Transparency:They see one cost of selling the invoice upfront, that’s it.

Peace of Mind: No lock-in, no personal guarantees. We work on their terms.

Erasing Pain Points. Offering More control, choice and value.

WHY DO SMEs USE US?

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CASE STUDIES

High Growth. Tech & Services-based. Exporters.

• Online retailer, supplying Amazon• Exporting to 126 countries• Payment terms of 60 days• Huge recent growth • Relative lack of trading history

• Fast growing food distributor• New large orders to fulfil• Significant upfront costs• Payment terms of 30 days

• Mobile App developer• Supplying large telecoms company• Payment terms of 60 days• Light on ‘fixed assets’

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Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013160 425 970 1,519

3,6216,234 6,640 7,341

5,683

10,300

19,200

Auction Volume (GBP thousands)

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Total Volume: £90m

Current monthly volumes: £10m+Av. auction size:

£80kAv. # of auctions per user: 8Loss rate:

0.1%

MI Trading Stats (Since Inception)

WHAT HAVE WE DONE?

Rapid growth and Government investment

www.marketinvoice.com0845 548 0508

Thank you!