The Receivables Exchange – A New Capital Marketplace

The Receivables Exchange is developing the world’s first real time, centralized electronic marketplace for auctioning commercial accounts receivable (AR). Based on the same technology as the New York Stock Exchange’s (NYSE) bond trading system, the Exchange will connect a global network of capital providers with small and medium sized businesses in search of working capital to help them grow. In effect, the Exchange will serve as the first capital marketplace designed specifically to meet the liquidity needs of small and medium sized companies.

Through the Exchange, capital providers and financial institutions will be able to broadly diversify their portfolio with attractive, high growth investment opportunities. Accounts receivable currently represents the largest use of capital for small and medium sized businesses; yet it is the only significant debt not professionally managed in the U.S.

A $17 Trillion Opportunity
The Exchange will centralize a marketplace consisting of more than $17 trillion of annual business-to-business AR volume in the US. By doing so, it will create an entirely new way for financial institutions to trade this asset class, generating a huge growth opportunity for those firms in search of stable, high-growth investments. Through its proven technology platform, the company will make the sale of accounts receivable completely transparent, globally competitive, and ultimately a simple, fast and efficient experience.

A Global Marketplace
Nicolas Perkin and Justin Brownhill are co-founders of The Receivables Exchange. Both executives feel that there is a tremendous opportunity to expand the U.S. accounts receivable finance market to have it more closely resemble its European counterpart. “Invoice discounting,” as it is known in Europe is an accepted mainstream banking product and a $500 billion industry where most of the major banks and financial institutions routinely buy and sell receivables. They envision a similar industry here in the U.S. where accounts receivable will become the preferred method of sourcing working capital because it is priced independent of the volatile credit markets.

The Receivables Exchange is a direct bridge between accredited global capital providers and small and medium-sized businesses in the US. In order for these financial institutions to participate effectively within this new global marketplace, The Receivables Exchange will provide transparency and standardization through its innovative trading platform. They will do so through a comprehensive due diligence package that will facilitate more informed credit decisions by providing visibility and access into each receivable, and by pricing the asset similar to a zero coupon bond. The end result for capital providers will be a simple and cost-effective way to invest in an asset class providing stable returns.
www.receivablesXchange.com

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