Get Working Capital at Competitive Rates - Accounts Receivable Financing at The Receivables Exchange

At The Receivables Exchange, Sellers Gain Access to a Global Network of Accredited Investors and Billions of Dollars of Working Capital to Grow Their Businesses; Buyers Gain Access to an Untapped $18 Trillion Marketplace

NEW ORLEANS, November 17, 2008 - The Receivables Exchange (www.ReceivablesXchange.com), the world’s first online marketplace for real-time trading of accounts receivable, today announced that it has launched its proprietary patent-pending trading platform to conduct live trading of accounts receivable. At The Receivables Exchange, U.S. businesses (Sellers) are able to increase their cash flow and free up their working capital by having their outstanding receivables bid on in real-time by a global network of institutional investors (Buyers).

Changing the Landscape for Business Financing

For businesses, accounts receivable represent the most under-utilized asset on the balance sheet – with more than 60%[i] of working capital tied up in outstanding invoices. The average turnover of receivables is 48 days, meaning most businesses wait nearly two months before collecting cash owed to them by their customers – essentially extending them a free loan that they could otherwise reinvest into growing their companies. By selling their receivables on the Exchange, businesses can free up cash to accelerate re-investment into their businesses such as hiring more employees, expanding operations, investing in infrastructure and delivering more goods and services, all as a result of their strengthened liquidity and financial position.  

The Receivables Exchange is changing the landscape of business financing by providing a new dimension in working capital management. The Exchange connects millions of small and mid-sized businesses (Sellers) in search of capital to a global network of institutional investors (Buyers) looking to broaden and diversify their portfolio. Buyers get direct access to an $18 trillion[ii] new investable asset; Sellers are introduced to a new source of liquidity by having their receivables competitively bid on in real-time by multiple Buyers. 

 “The Receivables Exchange was founded on the fundamental belief that America’s small and mid-sized businesses should have better access to working capital,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “In today’s credit crisis, we’re hearing from CEOs and CFOs across the country that the need has never been greater for them to identify alternative funding sources to reinvest into their businesses in order to maintain their success.” 

Companies of all sizes – from under $10 million to over $150 million - have been signing up to use their receivables to accelerate cash flow. Members span a diverse range of dozens of industries, including manufacturing, technology, transportation, distribution and staffing – all realizing the strategic advantage of monetizing their accounts receivable, particularly in today’s troubling credit crunch. 

“We’ve been fortunate to experience tremendous growth despite our cash flow constraints, but it’s imperative – especially in this economic environment – that we find faster, more competitive ways to improve our cash flow,” said George Rosero, Founder and CEO of Atlanta Pediatric Therapy. “The ability to trade our receivables on the Exchange is going to answer our needs for a faster way to realize even greater growth.” 

For the first time, institutional investors will be able to access the lucrative and liquid marketplace of this new investable asset class. For investors looking to diversify and broaden the reach of their portfolios and generate attractive returns, The Receivables Exchange provides standardized and electronic access to a previously untapped marketplace of $18 trillion of B2B receivables. Commercial banks, hedge funds and asset-based lenders can take advantage of the centralized, competitive marketplace to realize a stable, high growth investment opportunity.  

“The Receivables Exchange is a phenomenal idea that has hit the asset based finance industry by storm,” said Michael Scanlon, Managing Director of Hedgeco.Net and Member of the Board for The Hedge Fund Association. “Through its centralized, transparent marketplace, it is transforming an industry that has long been based on one-to-one relationships, effectively making the sale of commercial receivables a completely transparent and globally competitive marketplace.”

“Institutional investors around the world are constantly looking for new classes of high-quality investments,” said Nic Perkin, co-founder and president of The Receivables Exchange. “An online auction marketplace represents an opportunity for them to gain access to a new investable asset class of millions of businesses that can use the Exchange to drive their growth.” 

“The Receivables Exchange allows us to extend our asset-based finance investment strategies to include short-term receivables,” said Sam Adams, managing director of Cedar Lane, a New York based asset based hedge fund. “The Exchange offers a unique opportunity to obtain returns better than money-market but with shorter tenures than the traditional entertainment and media loan positions in our funds’ portfolios.  Through The Receivables Exchange platform we can invest funds on a short-term basis to a qualified pool of Sellers at a more attractive rate of return than cash alternatives without diverging from our investment strategy.” 

For more information about The Receivables Exchange and becoming a Member, please visit www.ReceivablesXchange.com/Seller if you are interested in learning more about trading receivables or www.ReceivablesXchange.com/Buyer if you are an accredited investor interested in generating attractive investment returns.

The Receivables Exchange (www.receivablesXchange.com) is the world’s first online marketplace for real-time trading of accounts receivable. The Receivables Exchange is changing the landscape of small business financing by providing a new dimension in working capital management. The Exchange connects a global network of accredited investors (Buyers) to the nation’s three million small and mid-sized businesses (Sellers) in search of capital to grow their businesses. Buyers get direct access to an $18 trillion new investable asset; small businesses get to access to a new competitive working capital management solution by having their receivables bid on by multiple Buyers in real-time. The Receivables Exchange has secured financing from Prism VentureWorks and Fidelity Ventures, the venture capital arm of Fidelity Investments. For more information, visit www.receivablesXchange.com.