West Oxfordshire District Council are investing £50,000 in local businesses via funding platform MarketInvoice which allows firms to release funds from unpaid invoices.

Business owners will be able to upload their invoices online where they are funded by investors including the Council. When the invoice is paid, typically after 45 days, investors’ money is returned and is ready to be used again. The Council’s £50,000 will be deployed on a continuous basis but only to local businesses.

Unlike traditional factoring or invoice discounting, the service is flexible, meaning firms can sell as many or as few invoices as necessary rather than their entire debtor book.  There is no contract so they can use the platform as and when they need it. Costs are typically between one and three per cent of the value of the invoice.

Cllr Warwick Robinson, Cabinet Member for Economic Development, said: “In recent years, a major growth barrier for firms has been a lack of working capital.

“This innovative scheme means they do not have to spend time and resources chasing unpaid invoices. Instead, they have cash up front to improve their liquidity and help with expansion.”

MarketInvoice has already provided more than £900m worth of finance to businesses across the UK, including £1.5m to firms in the District and has attracted investment from the Government-backed British Business Bank.

Cllr Robinson added: “The MarketInvoice platform is a great way for the Council to help local businesses directly where they need it and it means that our funds can be used again and again.  I believe this will be a real advantage for local firms and will benefit the West Oxfordshire economy as a whole.”

Anil Stocker, Chief Executive & Co-founder of MarketInvoice, said: “We’re delighted to be supporting local businesses in West Oxfordshire. By deploying funds on our platform, the Council is able to invest directly into the local economy, boosting businesses and creating jobs across the District.”

For more information see MarketInvoice's website.