Video: Why did you create Marketlend?
When Marketlend’s founder, Leo Tyndall saw a big disparity between the way SMEs and big business were being treated by traditional lenders, he saw an opportunity to fix the problem, while creating a investment options for investors.
Watch Leo reflect on why he started Marketlend to learn a little more about the dynamics between lenders and businesses of all sizes.
The reason why I created Marketlend was I saw a gap in the market. What I saw was that at the smaller end of town 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 SMEs were actually turning around and having to pay 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 set up a business which was able to give those smaller clients, SMEs typically turning over between $250,000 and $5-10 million, the same advantages as the bigger end of town.
So that was to essentially enable them to 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 whilst they’re waiting to be paid by a large debtor.