In a previous blog post we revealed that nearly a third of small business loan applications were rejected outright in 2010.
Little wonder that small businesses are shying away from the banks then, and seeking funding from elsewhere.
But of all places to find short term credit, you probably wouldn’t expect to find it on Ebay-style auction website…
That’s the idea behind www.marketinvoice.com though, a site which effectively lets you sell off unpaid invoices to the highest bidder.
You list your invoice on the market place, and investors bid to effectively take ownership of the money owed. You can then take the cash amount offered, which is forwarded to your business straight away – and leave the winner of the auction to wait it out for the invoice to be paid.
It’s an interesting, modern solution to the age-old business problem of crippling cash flow, and already the site has seen invoices totalling more than £500,000 change hands.