Advantages of the Exchange
Efficient. Effective. Proven.
Our Corporate Receivables Program provides a secure, real-time trading platform to auction commercial accounts receivable to institutional Buyers. The Corporate Receivables Program is an efficient and cost-effective supplement to commercial paper and securitization and offers several important benefits:
| Increased Liquidity | Risk Management | Effective Balance Sheet Management | Flexible & Efficient Funding Platform |
|---|---|---|---|
| Leverage a new source of working capital at a competitive cost | "True sale" of accounts receivable transfers credit exposure to Buyer of invoice obligor | Expand mix of assets on company balance sheet | Reduce transaction, legal and structuring costs of selling receivables with a standardized electronic trading platform |
| Drive down cost of capital and receive fair market value with a competitive bidding process | Compliance with internally or externally imposed concentration limits (geographic, industry, party, etc.) without the sacrifice of sales | Monetize non-productive assets and utilize off-balance sheet financing with a true sale of the accounts receivable | Control the price parameters and auction duration |
| Diversify your funding sources with access to the Exchange's wide network of institutional Buyers | Broad network of Buyers mitigates single party financing risk | Improve financial performance metrics (i.e., ROA, ROE, etc.) and quarter-end cash position | View auction bidding in real time to gauge investor appetite |
| Reduce DSO to 1 day and improve cash conversion cycle | Trade as frequently or infrequently as desired (on an as-needed basis) |