The Receivables Exchange is the world’s first online marketplace for real-time trading of accounts receivable. The Receivables Exchange pioneered the online receivables financing marketplace in 2008 with the launch of its proprietary receivables trading platform. The receivables finance industry represents an $18 trillion marketplace.
Most companies have more than 60% of their working capital tied up in accounts receivable, limiting their ability to fund the growth of their businesses and contribute to the growth of the U.S. economy. On The Receivables Exchange, businesses sell their accounts receivable at competitive terms to a global network of accredited institutional investors that compete in real time to purchase them. Cash flow is one of the biggest considerations for most companies and one of the greatest barriers to improving operating and financial performance.
Here is a bit more on How It Works:
The Receivables Exchange allows businesses to sell their receivables to a global network of institutional investors and access working capital in as little as three days. When you consider the typical remittance term of 48 days, or as much as 180 days, The Receivables Exchange is a welcome financial tool for small and mid-sized businesses.
The process is simple and efficient for both the Sellers (the businesses seeking capital) and the Buyers (the investors purchasing receivables).
The Sellers post as many eligible receivables as they wish, and as often as they like, and set the auction parameters (the duration of the auction, the minimum advance amount, and the maximum fee they will pay). Unlike the typical remittance process, this puts complete control in the Sellers’ hands.
The Buyers also have complete control. They post profiles indicating their preferences, and proactively browse and search for auctions of interest to them. If receivable postings meet the criteria of both the Sellers and Buyers, the Buyers can bid on the postings.
TJ McCue writes about Small Business.