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MarketInvoice offers commissions to lure advisers

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25th Apr 2017
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Online invoice finance provider MarketInvoice is ramping up in the UK with with a 40% revenue-sharing deal for accountants and advisers.

The incentive structure reduces to 20% in subsequent years, but reflects the fintech company’s focus on accountants as a channel for its online alternative finance solution.

The commission structure is one response to the cultural resistance the company encountered from UK practitioners in a series of recent focus group meetings. The company found a residual stigma within the profession that invoice finance is an equivalent to pay day loans - a last resort for failing companies.

The feedback helped to MarketInvoice Pro, an end-to-end invoice discounting service launched in Febrary. According to the company’s co-founder and chief operating officer Ilya Kondrashov, MarketInvoice Pro is designed to offer invoice finance on a confidential basis and can foster continuing relationships with borrowers as opposed to the invoice-by-invoice set up for the company’s existing Select service.

“Commercial finance brokers, accountants and introducers who refer business to us typically have long-term relationships with clients. We’re trying to build on that with MarketInvoice Pro by opening up their whole invoice book for finance,” he said.

But the company is also working to counteract a lack of awareness of the finance that is now available online: “Many successful fast growth companies use the service as it's really the only option available that can grow in line with the business, and can smooth cash flow to help companies meet payroll demands, product development and growth opportunities while waiting for their customers to pay.”

Because the online finance system integrates with borrowers’ Xero accounting systems, MarketInvoice Pro acts as a platform for faster risk assessments and access to funding, Kondrashov said.

Advisers interested in referring clients to MarketInvoice can do so through its new introducer partner portal. Once clients are signed into the portal, they can apply for invoice finance immediately and get an indicative quote. The adviser can track their progress online and view updates on their commission payments.

According to MarketInvoice, due diligence and funding decisions can be made within seven days.

MarketInvoice has established to its satisfaction that its products do not fall within the scope of financial services regulations and said there is no problem with professional codes of conduct in relation to commissions recieved by advisors. 

“In practice we expect most will have standard terms in their engagement letters with their clients where the client authorises the accountant to accept these payments without having to account to the client for them,” Kondrashov said.

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