# DueCourse secures £6.25m investment Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-09-24 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Manchester-based FinTech DueCourse raises £6.25m investment Meta Description: Manchester-based FinTech secures largest investment seen outside London for SME finance, unlocks cash from unpaid invoices for small businesses. URL: https://financedigest.com/duecourse-secures-6-25m-investmenthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/founders-l-r-tim-paul-jon-1736844493085-compressed.jpg) _The Manchester-based FinTech company raises investment to grow its lending to UK SMEs_ DueCourse, the cloud-based invoice financing service for SMEs, has secured £6.25 million of investment in its latest round of funding; the largest investment seen outside of London for a FinTech company. The round includes £1.25m of equity and £5m of debt for lending to UK SMEs. New backers include the founders and investors of Zoopla, LoveFilm, TransferWise and LinkedIn. Founders L-R Tim, Paul, Jon This new round of angel investment puts DueCourse in a strong position within the SME [business lending market](https://www.financedigest.com/marketing-communications-is-a-business-critical-pillar-now-and-in-a-post-pandemic-future.html "Marketing Communications is a business-critical pillar now – and in a post pandemic future") in the UK, which lent an estimated £53 billion to small businesses in 2014. Launched in 2015, Manchester-based DueCourse’s [software technology](https://www.financedigest.com/due-to-the-advancements-in-technology-the-medical-image-analysis-software.html "Due to the advancements in technology the medical image analysis software") unlocks the cash tied up in unpaid invoices, giving SMEs control over their cash flow and empowering them to meet their ambitions. 8 out of 10 [small businesses](https://www.financedigest.com/4-ways-small-businesses-can-save-money-while-outsourcing.html "4 Ways Small Businesses Can Save Money While Outsourcing") who use the cash flow utility go on to regularly use the product; demonstrating that the service is proving very popular with UK SMEs. The business is planning to raise a further Series A round of £10-15 [million in funding](https://www.financedigest.com/uk-launches-270-million-pound-fund-to-support-green-heating-technology.html "UK launches 270 million pound fund to support green heating technology") over the next 10 months to expand its service around the world. Aimed at small businesses who regularly invoice clients, the free [software links to a company’s online accounting](https://www.financedigest.com/is-your-accounting-software-holding-you-hostage.html "Is your accounting software holding you hostage?") platform and uses it’s proprietary risk engine to assess which invoices are eligible for a cash advance. Once an advance has been requested, the money reaches the [customer’s account](https://www.financedigest.com/theres-a-fine-line-between-relinquishing-control-and-accountability-financial-institutions-must-balance-both-to-successfully-cloudify-operations-and-meet-customer-expectations.html "There’s a fine line between relinquishing control and accountability. Financial institutions must balance both to successfully cloudify operations and meet customer expectations") in a matter of hours. The traditional invoice [finance model](https://www.financedigest.com/gary-mcgaghey-explains-how-cfos-can-strengthen-decision-making-processes-and-reimagine-the-finance-model.html "Gary McGaghey Explains How CFOs Can Strengthen Decision-Making Processes and Reimagine the Finance Model") requires an SME to handover all their invoices, can take weeks to set up and requires signing a lengthy contract with complicated fees. The finance [company](https://www.financedigest.com/allianz-trade-wins-global-banking-finance-reviews-best-trade-credit-insurance-company-asia-pacific-2022.html "Allianz Trade wins Global Banking & Finance Review’s Best Trade Credit Insurance Company Asia Pacific 2022") also informs all customers that the SME is in a finance arrangement. DueCourse is a completely new cash flow utility that offers a flexible, immediate and accessible [source of finance](https://www.financedigest.com/uk-finance-minister-hunt-to-make-statement-at-1000-gmt-source.html "UK finance minister Hunt to make statement at 1000 GMT – source") for UK SMEs. No contracts are needed to install the free software and it is completely confidential ( [end customers are never aware that a business is using the service)](https://www.financedigest.com/high-energy-shockwave-therapy-units-market-end-user-demand-by-types-regions-top-players-service-provides-regional-outlook-and-forecast-to-2028.html "High Energy Shockwave Therapy Units Market End-User Demand by Types, Regions, Top Players, Service Provides, Regional Outlook and Forecast to 2028"). Businesses can choose how often they use it and when they use it; whether that’s hiring new people, [funding new resources](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore") or purchasing equipment. The investment follows the news that the company is rapidly [expanding its addressable market](https://www.financedigest.com/obesity-surgery-devices-market-expand-at-the-fastest-cagr-of-9-6-during-the-forecast-period-2014-to-2020.html "Obesity Surgery Devices Market Expand At The Fastest CAGR Of 9.6% During The Forecast Period 2014 to 2020") and has been chosen to partner with the leading online accountancy packages. In addition to new partnerships, the investment has also provided DueCourse with a new opportunity to [expand the team](https://www.financedigest.com/zivver-expands-leadership-team-names-three-new-c-level-executives.html "Zivver Expands Leadership Team, Names Three New C-level Executives"), with Dylan Smith – a former Apple engineer – joining the company as Technical Architect. He joins an already impressive line-up of business people and technical experts, including Kate Sharp the [former chief executive](https://www.financedigest.com/wagamama-owner-restaurant-group-names-former-cadbury-executive-ken-hanna-chairman.html "Wagamama-owner Restaurant Group names former Cadbury executive Ken Hanna chairman") of ABFA (The Asset Based Finance Association) who sits on the company’s advisory board. Paul Haydock, CEO and co-founder of DueCourse, said: “We started DueCourse because we realised traditional methods of [finance are completely out of sync with what today’s SMEs need](https://www.financedigest.com/the-four-pillars-of-data-integrity-what-finance-businesses-need-to-know.html "The four pillars of data integrity: what finance businesses need to know"). We saw the [opportunity for a company to disrupt the market and help SMEs get access to the cash they need to fuel their business](https://www.financedigest.com/the-metaverse-a-business-opportunity.html "The Metaverse – a Business Opportunity?"), in real time. We want to be seen as a new kind of cash flow utility – once a [business has linked their accounting](https://www.financedigest.com/being-nimble-and-responsive-in-banking-and-business-has-arrived-thanks-to-accounting-automation-technologies.html "Being Nimble and Responsive in Banking and Business Has Arrived, Thanks to Accounting Automation Technologies") package for free, DueCourse is simply there in the background for them to access the money in their unpaid invoices whenever they need it. “This extended Angel round of investment was actually oversubscribed, which highlights just how much interest there is among investors around our scalable, data-led [technology and its application](https://www.financedigest.com/u-s-lighting-products-market-recent-strategies-trends-technology-innovation-analysis-application-by-tmr.html "U.S. Lighting Products Market: Recent Strategies, Trends, Technology Innovation, Analysis Application by TMR") around the world. The [funding is a great boost for the company](https://www.financedigest.com/debt-strategies-for-funding-early-stage-companies.html "Debt Strategies for Funding Early Stage Companies") and will help us go from strength to strength as we continue to expand and improve our software.” CEO Paul Haydock graduated from the University of Cambridge with a first degree in engineering before going on to start his own [successful business](https://www.financedigest.com/why-start-ups-fail-5-barriers-to-business-success-and-how-to-overcome-them.html "Why start-ups fail: 5 barriers to business success and how to overcome them"), myparceldelivery.com at the age of 24 and winning the Digital Entrepreneur of the Year award in 2011. Paul then [successfully exited the business](https://www.financedigest.com/how-to-use-social-media-platforms-to-successfully-scale-your-business.html "How to use social media platforms to successfully scale your business") in 2013 before going on to found DueCourse in 2014 with the aim of empowering SMEs to take control of their cash flow. Cash flow problems are one of the major issues affecting small [business growth](https://www.financedigest.com/covid-19-is-impacting-the-high-speed-steel-market-size-business-revenue-forecast-leading-competitors-and-growth-trends-2031.html "COVID-19 Is Impacting The High Speed Steel Market | Size, Business Revenue Forecast, Leading Competitors And Growth Trends 2031") in the UK. Figures from the Association for Asset Based Finance (ABFA) show that businesses with a turnover of under £1 million wait on average 72 days to be paid by suppliers and, according to Santander, 46 per cent of businesses report being [hit by at least one recent cash flow](https://www.financedigest.com/xerox-shares-slide-as-annual-revenue-cash-flow-forecasts-take-a-hit.html "Xerox shares slide as annual revenue, cash flow forecasts take a hit") setback. In response to this and the [traditional lenders such as banks](https://www.financedigest.com/digital-banking-traditional-banks-vs-fintech-providers.html "Digital banking: Traditional banks vs. fintech providers") showing a reluctance to lend to SMEs, invoice financing in the UK has risen 63 per cent in the first quarter of 2016 to £711 million, compared to the same period in 2015 when this figure stood at £435 million. For more information about how DueCourse helps improve cash flow for small businesses visit [www.duecourse.com](http://www.duecourse.com) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---