MarketInvoice called in a funding round of £6m on Monday as the peer-to-peer fintech start-up plotted further product development in working capital.
Under plans revealed by the firm, more options will be rolled out to small businesses allowing them to raise money through licenses, contracts and subscriptions, as well as other options around financing suppliers.
Jeppe Zink, general partner at technology investors Northzone, said: "We’ve been working with MarketInvoice for nine months and are really excited by what the team is achieving. We’re seeing great metrics around user growth and engagement.
"This is a classic example of a tech business disrupting an age-old industry and having a fantastic real world impact on its users based on a fundamentally better service. The opportunity for growth is massive."
Since opening its doors in 2011 MarketInvoice has collected £475m, with the company now processing an average of £30m a month.
The firm’s clients include the British government itself, the coalition administration having opted to lend £50m to small businesses since August 2013 via MarketInvoice and the British Business Bank.
Following the fundraising MarketInvoice also confirmed it would be handling the Innovative Finance ISA from its launch in 2016, which will facilitate tax-free peer-to-peer financing.
"Our mission is to become the destination for small businesses looking for working capital finance. This oxygen of funding for UK businesses is a poorly served market and it represents a huge opportunity," said Anil Stocker, chief executive of MarketInvoice.
"We want to offer small businesses easy access to their monthly funding needs, and enable investors – from institutions to individuals – to drive small business growth whilst earning a market beating return."
