PwC launches initiative to help small businesses
PricewaterhouseCoopers and invoice finance platform MarketInvoice have struck a deal that allows them both to help new small businesses.
Small and medium-sized enterprises (SME) comprise well over 90 per cent of the UK’s companies and dictate the pace of economic growth. So it’s no surprise they represent a huge market that is being targeted by larger companies – not for acquisitions. With that in mind, PricewaterhouseCoopers (PwC) have struck a deal with MarketInvoice that will enable them both to break into that market more effectively.
PwC and MarketInvoice have announced that an agreement has been reached between invoice finance platform MarketInvoice and PwC’s Myfinancepartner team – the cloud-enabled accounting service aimed at smaller businesses.
PwC says it will alert and inform its clients of the services that MarketInvoice offers, while the latter says it will refer customers to PwC where it is appropriate.
Mentoring sessions are also an important part of the agreement, which will offer advice on the finance and growth strategies open to high-potential small businesses. But the biggest benefit the arrangement could have for startups and small firms with lots of potential is that it may open them up to the world of alternative finance.
MarketInvoice is used by companies who want to bring in the money they’re owed without having to wait for it. The platform allows businesses to effectively sell their invoices and allow the buyer to collect the balance for themselves – which means the seller rarely gets the full value of the invoice, but receives funds sooner rather than later.
Invoice financing is an important option for firms among the alternative finance available to them. Peer to peer lending is expected to surpass £1 billion for UK businesses this year – 200 per cent more than last year – and MarketInvoice says a fifth of that will change hands due to its services.
“Many of our client businesses are not aware of the range of alternative finance options available. Often they believe that traditional financing routes offer the only options,” says Tony Price, PwC partner leading Myfinancepartner in the UK.
“Businesses are demanding new, flexible and faster options for funding, and also new ways for accessing professional advice.”