The Receivables Exchange – A New Capital Marketplace
16/06/2008
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
