- UK Based Invoice Auction platform
- Claims 100% success rate
- Used by businesses of all sizes/sectors
- Minimum invoice £5,000
- Minimum company worth £50,000
Platform Black allows any business trade invoices online. The business pays a small percentage on each invoice and they can sell as many or as few invoices as they like. Platform Black claims 100% success rate since it was founded in 2012. This means that every business that ran an auction in the platform, got the finance it wanted at a price it set, or sometimes even at a smaller price…
Invoice Trading and Platform Black are used by businesses of all sizes, and in a range of sectors, to bring valuable cashflow into their businesses. Platform Black was originally envisioned as an eBay for invoices, where a hands-off approach could be taken. But as the company began to scale, funders expected a higher degree of due diligence, so Platform Black added a risk team to the finance unit.
The process follows these steps:
- The business must register with the platform. Platform Black then performs due diligence to make sure that the company has a minimum net worth of £50,000.
- Once approved, companies can place chosen invoices up for auction and define the terms of sale (indicating the maximum rate they are willing to pay).
- Each funder who is registered with the platform is notified of the auction. As more funders bid on that invoice, the rate drops as those funders compete for the business.
- When the auction closes, the winning funders transfer funds to Platform Black. The platform passes the money onto the business on the following day.
- At the end of the credit period, their customer pays the invoices and Platform Black distributes these funds to the funders.
Businesses use the platform when they want or need it, and there are no charges if they don’t. There are no registration fees, and the rate and cost decreases as funders bid for your finance invoice. The transaction fee is 1% + VAT charged on the Gross invoice value, and it is payable per 30-day period. (The cost for funders is 10% of any gain they make.)