Marketlend Academy: How unfair credit conditions inspired Marketlend
Listen to CEO and founder of Marketlend, Leo Tyndall, explain why he created Marketlend. If you want to read the full transcript, please see below.
The reason why I created Marketlend is I saw a gap in the market. What I saw was that at the smaller end of town, the SMEs were finding it difficult to actually obtain extended credit terms. Whereas the bigger end of town was getting those. So what I mean by that was that what we found was that SMEs were actually turning around and having to pay, say, seven days or 30 days net of an invoice. Whereas the bigger end of town was paying 90 days extended credit.
So what we did was, we set up a business which was essentially able to give those smaller end of town clients, and these are SMEs between typically turning over 250,000 and up to 5 to 10 million, the same advantages as the bigger end of town. So that was to essentially enable them that they could buy goods on credit, have 90 days to sell those goods, and within that time then they would have the funds to repay back the 90-day credit or in the case of a debtor finance arrangement where they were able to turn around and fund their working expenses and working capital, and they were able to do that within the cycle that they would have in whilst they’re waiting to be paid by a large debtor.