MarketFinance, the leading fintech credit and payments company, has secured a £30m 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. Today’s announcement follows a recent Bain & Company forecast that in the US alone, B2B embedded finance payments will grow threefold to $2.6 trillion by 2026. It represents a vote of confidence by Viola in MarketFinance’s track record of innovation to support SMEs and ability to lead the growing B2B embedded finance market.
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.
"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. 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," said David Sutton, Nivoda’s co-founder and CEO.
“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,” said Anil Stocker, CEO and co-founder at MarketFinance.
“We are delighted to continue our partnership with MarketFinance and support the company's expansion into the growing B2B embedded finance space. The team has a deep understanding of their customers' needs and has built an impressive suite of technologies to help these businesses move forward. This latest agreement will enable UK-based firms to offer credit to their customers in multiple currencies, helping them grow at home and abroad,” said Ido Vigdor, General Partner at Viola Credit.
