Marketinvoice and Platform Black have offered the possiblity to invest in invoice finance / invoice discounting loans for some time in the UK. However these were not an option for me due to requirements (minimum invest and/or UK bank account).
Therefore I made my first bid on a loan of this type on Investly on Dec. 31st. It was the first invoice discounting loan the Investly marketplace launched, making this asset class available to investors in the European Union from bid amounts as low as 10 Euro. Investly ran the offer in a three day auction period, with 15% maximum interest. Even though the bidding period was over New Year, the demand was high and several investors were outbidded during the underbidding auction (screenshot right shows status on first day of auction).
Registered investors are able to see the underlying invoice that is financed.
The loan is for less than a month, due to be repaid on January 19th.
Today Mintos launched a cooperation with DEBIFO which as a originator will provide invoice finance loans on the Mintos platform. That enabled me to make my second bid in invoice financing. The loans listed today at the Mintos p2p lending marketplace carry interest rates from 11.2% to 13.8% and are for a loan term of less than a month.
‘For most of the small and medium enterprises in the Baltics, receiving client payments in time is critical in order to ensure continuous operations. While many of these companies have large, reliable and stable business customers, they typically set payment terms of up to 60 days or more, which makes it hard for small businesses to survive’, says the peer-to-peer lending platform Mintos CEO Martins Sulte, who welcomed the cooperation with DEBIFO.
Mintos management forecasts high investor interest in this investment product. Martins Sulte continued by saying ‘Most of these outstanding invoices are from stable, large companies, which means that the risk is relatively low. The other aspect that investors will like are the short repayment terms’.
6 thoughts on “My First Bids in Invoice Finance Loans”
Is it only me, or Investly’s invoice disappeared? I have invested quite a hefty some in this invoice, but I can’t find it anymore.
James, I think you might be looking in the wrong place? If I click “Portfolio” and then “Invoices”, I see it right at the top (Invoice Portfolio). My data is listed correctly.
Good to see the option for anyone to invest in funding businesses, however the average person might need help understanding the risk associated with their investment, something the invoice finance companies have spent years building their understanding.
Glenn, good point. It will take a while for the platform to build a track record and meaningful statistics. Until then investors should diversify and spread their risk.
Ok, it seems that I have been outbidded… And I have not received any notification regarding the status. As I cannot see this invoice anymore, at what rate did it close? Hopefully, mintos will have more invoices to offer…
It closed at 15%.
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