SMALL firms have given the seal of approval to an innovative scheme that will boost West Oxfordshire businesses.

West Oxfordshire District Council has invested £50,000 in funding platform MarketInvoice, and now that cash is helping firms invest without having to involve the bank.

The platform allows business owners 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 process means businesses are able to operate at a much quicker pace without having to wait for funds.

One firm to sign up is Witney IT support business Twincentric, which has been using the service since 2015.

Managing director Tony McGurk said: “We started using the service when we won a major new contract and we needed to invest in new equipment.

“We approached the bank for funding but they weren’t interested, so through MarketInvoice we were able to establish a line of credit on our first invoice.

“The main advantage is its speed.

"We can put an invoice onto the system at 9am and we can have 85 per cent of its value in our bank account by the end of the day.”

Mr McGurk only uses the system when he needs to raise cash for a particular project or piece of equipment.

Once the invoice is paid by the client, MarketInvoice releases the remaining cash, taking a fee of typically two per cent.

He added: “The more we use the service, the lower the cost. In the new year we will be starting a new contract and will be investing in equipment and taking on staff.

"I can make that investment because I know I have the flexibility.

“It is an easy way of generating cash and I am in control of it.”

The Council’s £50,000 investment in MarketInvoice is deployed on a continuous basis but only to businesses in the area.

Toby Morris, council deputy leader, said: “We were aware from local businesses that the lack of available finance was holding back business growth.

"It is fantastic to hear of local firms using our funds via MarketInvoice to help them grow and that is why we invested in it.

“I would encourage more ambitious West Oxfordshire businesses to sign up and appreciate the benefits which in turn will benefit the local economy.”

MarketInvoice has already provided more than £1.7bn 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.

Anil Stocker, chief executive and 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.”

See marketinvoice.com