“We are MonetaFlex and we are building an online crowdfunding platform that offers businesses a quicker and more flexible option to raise short-term funding by selling their unpaid invoices to multiple investors.”
Revealing those behind the site, MonetaFlex’s team explained:
“The two co-founders, Simba [Chiguma] and Michael [Eagleton], have backgrounds in private equity and corporate debt investment at global investment firms (KKR and Terra Firma Capital Partners) and MonetaFlex’s chairman is Peter Gardner, a former executive committee member at HSBC Alternative Investments and one of the original investors in Last.fm (sold to CBS for $280m) and an early backer of SUGRU which raised £3.5m on Crowdcube in July 2015. Our CTO, Emmanuel, has built software platforms for major financial institutions including BNP Paribas, Bloomberg and Unicredit.”
Key features of MonetaFlex include:
A. Invoice Finance Crowdfunding
- Businesses are able to sell one invoice at a time to multiple investors in competitive online auctions allowing for greater flexibility
- Typical whole-book invoice financing (whereby a business is contractually obliged to sell most of its invoices to a bank or finance company) is not suitable for all businesses and MonetaFlex provides the flexibility to dip in and out as business needs demand without contracts
- Businesses with excess cash in the bank can request suppliers to bid (by offering discounts) for early payment in automated auctions
- Suppliers can bid to receive discounts at any point during the tenor of an invoice
- This compares favourably to static arrangement’s usually included within payment terms e.g. “2% in 10 days” which translates to a high cost of financing for the supplier of 37% APR on a 30 day invoice
The company plans to use the funds from the Crowdcube towards Platform development (£50,000), Office space including dedicated office space post launch (£10,000), Marketing budget (£10,000), and Annual salaries (£30,000).
The campaign, which is set to close at the beginning of September, has already secured over £64,000.
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