Receivables finance - Frequently Asked Questions about The Receivables Exchange

The Receivables Exchange is the world’s first electronic marketplace for receivables finance. At The Receivables Exchange, businesses (Sellers) gain access to a global network of institutional investors (Buyers) ready to competitively bid to buy their receivables, allowing them to improve their working capital management to grow their businesses. Through the Exchange, investors gain access to more than 6 million thriving businesses in search of working capital finance.

Accounts receivable are the most under-utilized asset on the balance sheet, with most businesses having 60% of their working capital tied up in outstanding receivables. The Receivables Exchange centralizes a marketplace of Buyers and Sellers, turning these underutilized assets into a new alternative financing source of working capital finance for growing small and mid-sized businesses. By leveraging the untapped value of their receivables, businesses can meet their payroll, hire more employees, buy more materials and manufacture more products. Additionally, businesses wishing to improve the efficiency of their working capital and expedite reinvestment in their operations can utilize the Exchange as a valuable financing tool.

The Receivables Exchange was founded on the fundamental belief that, for a company to grow, it should be able to leverage the value of its outstanding receivables so that it can reinvest that capital into continued growth.  As a former CFO, co-founder Nic Perkin felt firsthand the frustration of having his company’s growth limited by its cash flow. He believes that when a company is presented with an opportunity to grow, it needs to have immediate access to cash and that traditional financing options are oftentimes too limiting for thriving, fast-growing small and mid-sized businesses. Rather than having 60% of their working capital tied up in outstanding receivables, companies should be able to leverage their receivables to drive growth. Perkin joined with Justin Brownhill, a former executive at Lava Trading, an equity and foreign exchange trading firm, and together they founded The Receivables Exchange to make the sale of accounts receivable a simple, fast, efficient and globally competitive marketplace designed to help businesses grow.

For America’s small and mid-sized businesses, accounts receivable represent the largest and most under-utilized asset on their balance sheet, accounting for nearly $18 trillion in commercial accounts receivable nationwide.

No. The Exchange is a marketplace where growing businesses are able to leverage the value of their outstanding receivables and remain in complete control of the financing parameters and transaction. The Buyers do not require a personal guarantee or all-asset liens on your balance sheet; no one notifies your customers of the sale; Sellers can post as few or as many receivables as they like; all communication flows through the Sellers. In addition to these efficiencies, Sellers can use the Exchange as seldom or as often as they like. The Exchange gives the Seller complete control and an unprecedented level of flexibility over their sale of receivables so that they are empowered to grow their business when and how they see fit. The Receivables Exchange helps Sellers to optimize their working capital management.