The Receivables Exchange Press Releases

Institutional Investor Magazine Names The Receivables Exchange One of the 40 Most Innovative Financial Technology Companies of 2010

Thu, 29 Jul 2010 10:00:00 GMT

NEW ORLEANS – July 28, 2010 – The Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, announced today that it was named to Institutional Investor magazine’s 2010 “Tech 40” list, which recognizes the most important innovators in financial technology. The company is ranked alongside some of the world’s largest financial services companies, including JPMorgan Chase, Credit Suisse, Bank of America and Citigroup. The Exchange delivers efficient access to capital through standardization, transparency, centralization and competition.

The Receivables Exchange is transforming the business financing landscape by allowing small and midsize companies to sell their receivables to institutional investors, who compete in real time to purchase the receivables for 98 to 99 cents on the dollar, on average. The competitive auction format drives down the cost of capital for Sellers and allows them to gain access to a flexible, affordable funding source. For institutional investors, the Exchange allows Buyers to diversify their portfolio by investing in a new $17 trillion U.S. receivables market. In the first half of 2010, receivables trading volume on the Exchange grew by more than 200%.

Justin Brownhill and Nicolas Perkin were honored as co-founders of The Receivables Exchange for their vision and innovation in financial services. The 2010 “Tech 40” list recognizes the top executives and innovators in financial technology according to four sets of attributes: experience and contributions over the course of a career, scope and complexity of responsibilities, influence and leadership inside and outside one’s organization, and pure technological achievement. The Receivables Exchange has been called a financial game-changer by many industry experts, and was recently cited in a Morgan Stanley B2B finance report as a new capital marketplace to help companies optimize their financial performance.

“We are honored to be recognized alongside such a distinguished group of industry leaders by one of the country’s top finance publications,” said Justin Brownhill, co-founder and chief executive officer of the Exchange. “We started this company because we felt businesses had a tremendous need for a faster, better way to access capital and fund growth. Since launch, we’ve been fortunate to help thousands of small and midsize companies trade hundreds of millions of dollars in receivables, proving to us that an open, efficient marketplace for receivables can transform the way companies fund growth.”

Read what Institutional Investor had to say about The Receivables Exchange’s innovative capital management solution, and click here for the full “Tech 40” list.

About The Receivables Exchange

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 institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow. Buyers get direct access to an $17 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

New Law Places Louisiana at the Forefront of Small Business Financing Innovation

Mon, 12 Jul 2010 10:00:00 GMT

The Louisiana legislature passed a law, signed by Gov. Bobby Jindal, making the sale of commercial receivables over electronic exchanges located in Louisiana defensible on a national level as a “true sale” of the asset. A strong true sale statute assures buyers on electronic exchanges that assets they have purchased cannot be recharacterized in the event of seller insolvency. This move establishes Louisiana as a leading innovator in the area of small business financing, and is the latest sign that receivables finance as a capital management tool has entered the mainstream.

“This legislation is a tremendous win for capital providers of all types and B2B businesses nationwide,” said Robert A. Zadek, a preeminent expert in commercial finance. “Receivables finance is the most effective way for businesses of all sizes to source working capital in today’s world. The advent and growth of electronic exchanges for trading receivables means that even more buyers and sellers will be able to participate in what is rapidly becoming an established capital marketplace.”

The Louisiana Exchange Sale of Receivables Act (Act 958), authored by Louisiana Senate President Joel Chaisson, explicitly defines the electronic sale of receivables as “true sales,” and prevents jurisdictions outside Louisiana from characterizing them differently. Defining such transactions as true sales makes the purchase of receivables more secure, and is an integral part of online receivables trading, a valuable small business financing alternative. As governments and private enterprise look for solutions to the small business credit crisis, this legislation vaults Louisiana to the forefront of states taking an active role in fixing the problem. The Receivables Exchange, the world’s first online marketplace for the real-time trading of accounts receivable, based in New Orleans, will benefit from the new law, which will protect buyers who use its platform and foster continued growth for the company.

“Financing and legislation need to keep pace with 21st century business if companies are to thrive in the new credit reality,” said Nic Perkin, co-founder and president of the Exchange. “With the passage of Act 958, Louisiana and The Receivables Exchange are revolutionizing the business financing landscape, and ensuring that companies of all sizes will have the unfettered access to the competitively-priced capital they deserve. We’ve now made it possible to trade receivables efficiently on a large scale, opening doors to an asset class that had been closed off. This law moves exchange-based receivables finance solidly into the mainstream.”

Louisiana has been a valuable partner as The Receivables Exchange continues to expand. At a press conference in January, Gov. Jindal praised the company’s innovation and dedication to the state, as the Exchange announced its $17 million Series C financing led by Bain Capital Ventures with reinvestment from Redpoint Ventures and Prism VentureWorks. In May, the company announced 66% month-over-month growth in receivables sold in March 2010.

The Receivables Exchange’s rapid growth establishes receivables financing as an affordable mainstream small business financing tool, and highlights the unmet demand for alternative forms of financing for the nation’s millions of SMBs. Most firms have more than 60% of their working capital tied up in their accounts receivable. The Receivables Exchange lets them sell their receivables to institutional investors in a competitive, real-time marketplace, giving them access to a flexible, affordable source of capital. Most auctions on the Exchange last one day and Sellers can obtain cash at an average of 98 to 99 cents on the dollar.

About The Receivables Exchange
The Receivables Exchange 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 institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion

The Receivables Exchange Named Finalist for 2010 American Business Awards(SM) in Two Categories

Fri, 18 Jun 2010 12:30:00 GMT

The Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, announced today that it has been selected as a finalist for the 2010 American Business Awards in two categories. The Exchange was named a finalist for “Business Innovation of the Year” for small businesses, and co-founder and chief executive officer Justin Brownhill is a finalist for “Executive of the Year” in financial services. The American Business Awards, also known as the Stevie Awards, are a public recognition of the efforts, accomplishments, and positive contributions of companies and business people worldwide. Recognition from one of the nation’s premier business awards programs affirms the value of the Exchange’s innovative working capital management solution. This year's Stevie Award winners will be announced during the annual gala on Monday, June 21, at the Marriott Marquis Hotel in New York City.

“The Stevie Awards recognize the highest business achievements, and we are honored to be named a finalist in two very competitive groups,” said Mr. Brownhill. “Since our launch in 2008, the Exchange has quickly become the one of the most attractive financing options for small and midsize businesses seeking flexible, affordable sources of growth capital. I am personally honored to be nominated, but I share all recognition we’ve received with my co-founder, Nic Perkin, and the rest of the Exchange team. We look forward to many more years of success.”

More than 2,700 entries from organizations of all sizes and in virtually every industry were submitted for consideration in more than 40 American Business Award categories. Finalists were chosen by a national panel of esteemed business executives during preliminary judging in April and May.

The Receivables Exchange is the world’s first electronic capital market where small and midsize businesses can gain access to a flexible and affordable source of working capital by selling their receivables in a competitive auction marketplace. The Exchange is revolutionizing the $18 trillion receivables finance industry by bringing Buyers and Sellers together for the first time to trade receivables. Born out of Brownhill and Perkin’s belief that small businesses should have unfettered access to affordable working capital to fund growth, the Exchange has realized tremendous success. In January, the Exchange announced its $17 million Series C financing led by Bain Capital Ventures with reinvestment from Redpoint Ventures and Prism VentureWorks. In May, the company announced 66% month-over-month growth in receivables sold in March 2010.

Almost a decade since its inception, the American Business Awards have presented the Stevie Awards to preeminent business leaders throughout the country, including past recipients such as IBM, Fannie Mae, and Oracle Corporation. The mission of the award is to raise the profile of exemplary organizations and individuals among the press, the business community and the general public. Members of the Awards' Board of Distinguished Judges & Advisors and specialized judging committees will select Stevie Award winners from among finalists in final judging.

For additional information on The American Business Awards and a complete listing of finalists visit www.stevieawards.com/aba.

About The Receivables Exchange
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 institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

About The Stevie Awards
Stevie Awards are conferred in four programs: The American Business Awards, The International Business Awards, the Stevie Awards for Women in Business, and the Stevie Awards for Sales & Customer Service. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about The Stevie Awards at www.stevieawards.com.

Sponsors and partners of The 2010 American Business Awards include Infogroup, Netezza, CIGNA, Citrix Online, Epic Advertising, High Performance Technologies Inc., imagistic, John Hancock, LifeLock, Lionbridge, PetRays, RCN, and SoftPro.

Balboa Capital Selects The Receivables Exchange to Provide Receivables Financing Solution to U.S. Businesses

Tue, 15 Jun 2010 10:31:00 GMT

The Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, announced today that it has been selected by Balboa Capital Corporation, the U.S. leader in equipment financing, to deliver its innovative working capital solution to Balboa’s small and midsize business customers across the nation. This partnership will bring a new financial solution to Balboa’s customers, allowing them to use their accounts receivable to help fuel business growth. These businesses will be able to quickly improve their liquidity by turning their receivables into cash using The Receivables Exchange’s proprietary online auction marketplace.

“As one of the largest privately held equipment finance companies in America, Balboa Capital has a deep understanding of the liquidity challenges that small and midsize businesses face as they work hard to grow,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Our receivables trading platform will complement the current financing services Balboa delivers, helping their customers to quickly improve their cash flow and optimize their accounts receivable management.”

“For more than two decades, we’ve been providing reliable and convenient financing options to small businesses across the country. It’s because of our unique strategy and dedication to customers that we understand the tremendous impact a flexible source of working capital can have on financial performance,” said Phil Silva, president of Balboa Capital. “We have always strived to invest in technology that increases financial transparency and efficiency. By joining efforts with The Receivables Exchange, we continue to expand our financing services to our national community of small and midsize businesses, helping them optimize their cash flow and build their business.”

Even in the best of times, improving cash flow remains one of the greatest and most consistent challenges for most companies, with more than 60 percent of their working capital tied up in outstanding invoices. The Receivables Exchange provides the optimal working capital solution for businesses to significantly lower their days sales outstanding (DSO) and realize an immediate and substantial improvement in cash flow. By selling individual or multiple receivables – when they choose, on terms they set – Balboa’s customers will be able to access a flexible, competitively-priced source of capital and reinvest that cash into their businesses.

For more information about the Balboa and The Receivables Exchange offering, visit: www.balboacapital.com/tre.aspx.

About The Receivables Exchange
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 institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

About Balboa Capital
Balboa Capital is one of the largest privately-held equipment finance companies in the United States delivering industry-leading technology, ease of doing business and innovative marketing tools that small and medium sized customers require to fuel the growth and success of their business. Celebrating more than 22 years in business in 2010, Balboa Capital markets its products through the small ticket, middle market, vendor and office imaging sales channels.

The Receivables Exchange Marks National Small Business Week with Appeal for Innovation in Small Business Financing

Tue, 25 May 2010 20:40:00 GMT

The Receivables Exchange commemorates National Small Business Week in honor of the small and midsize businesses (SMBs) that are essential to our nation’s economic growth. The week is sponsored by the U.S. Small Business Administration (SBA), and runs from May 23-29, with events taking place in Washington, D.C. As the world’s first online marketplace for real-time trading of accounts receivable, The Receivables Exchange provides businesses with a more affordable and flexible alternative source of capital. SMBs comprise the bulk of The Receivables Exchange’s growing customer base as they continue to increase liquidity.

The Exchange’s CEO Justin Brownhill spoke today on behalf of small businesses seeking new financial solutions to drive growth: “Small businesses employ two-thirds of private sector workers and account for about 45 percent of business revenues in the United States, yet less than 5 percent of capital markets are devoted to financing them,” Brownhill said.¹ “These businesses are vital to a sustainable national recovery. We are pleased to be an innovative source of affordable capital for the millions of small businesses that are important engines of economic growth.”

“The SBA’s message this week is that innovation drives growth. We’re the proof. Through the innovation that The Receivables Exchange brought to market, we were able to grow our staff by more than 25 percent last year, setting the stage for even more growth in 2010,” said Joe Reini, President of Atlanta-based Mason-Grey and a Seller on the Exchange. “Small businesses rely on marketplace innovators to help us drive our business forward. We support organizations like The Receivables Exchange and the SBA who are helping companies like mine thrive even in the most challenging of times.”

¹Source: Morgan Stanley report, “B2B Finance”, March 2010.

About The Receivables Exchange

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 institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

The Receivables Exchange Reports 66% Growth of Online Receivables

Wed, 19 May 2010 12:40:00 GMT

The Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, announced today that its market-based working capital solution experienced 66% month-over-month growth in receivables sold in March 2010. Data shows a higher rate of adoption by small and midsize businesses that are freeing up cash at an average of ninety-eight to ninety-nine cents on the dollar.

A new B2B finance report by Morgan Stanley addresses the disproportionate burden that most small and midsize companies are facing as they work to fund their businesses in the new “cash is king” economy. Morgan Stanley indicates the sale of accounts receivables as one of three viable credit solutions and features The Receivables Exchange as a new capital market to optimize financial performance, increase liquidity and fund growth, without the constraints and high costs of traditional financing. In 2009, bank commercial lending declined more than 24% leaving a dearth of funding for SMBs. The report suggests that small businesses are delaying business investment on the supposition that there is an overall lack of business credit, ongoing marketplace uncertainty and that they are not taking advantage of alternative funding.

Most businesses wait an average of 58.9¹ days before being paid by their customers and have more than 60% of their working capital tied up in outstanding invoices, creating a working capital tug-of-war and restricting growth. As the Morgan Stanley report indicates, by trading receivables on The Receivables Exchange, companies can reduce their days sales outstanding (DSO) from more than 50 days to as little as one day, increase their cash conversion cycle (CCC) and improve financial performance.

“Cash flow constraints can slow down an entire business line and significantly hamper growth,” said David Menard, president of Ramard, Inc., a Florida-based manufacturer and a Seller on The Receivables Exchange. “We have to pre-pay our distributors. Without access to capital we are unable to distribute products and meet our demand. With The Receivables Exchange, I get affordable access to capital. We make the discount back ten times over on increased production just from the sale of one auction.”

The Receivables Exchange Q1 data indicated that 75% of sellers on the Exchange became repeat customers with an average auction size of $50,000. The Exchange has Sellers in 49 states and 42 industries. Industries with high activity levels included wholesale and distribution, professional services, business support and manufacturing, which accounted for more than 25% of the activity. While most auctions on the Exchange last one day, the shortest auction of record closed in only 4 seconds. Sellers on The Receivables Exchange have more than $14 billion in accounts receivable inventory; TRE Buyers have more than $20 billion in Buyer liquidity.

“Small and midsize businesses deserve the same access to a flexible, affordable source of capital to fund their businesses that large-cap companies get,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “The positive response to our transparent online marketplace indicates that receivables financing, when delivered in an open and competitive market, provides an efficient and compelling way for SMBs to optimize their working capital management and drive company growth.”

Benefits of accounts receivable financing through The Receivables Exchange include:
•    Increased Liquidity: Access to cash in as little as 24 hours
•    Complete Control: Companies set all auction parameters, including minimum advance, maximum fee and auction duration.
•    Lower Cost of Capital: Competitive real-time bidding drives down cost
•    Improved Debt Position: Receivables are sold as an asset versus traditional lines of credit, which are balance sheet liabilities
•    Less Restrictive: No all asset liens, restrictive covenants or personal guarantees
•    Key Financial Benefits: Decrease Days Sales Outstanding (DSO), increase liquidity ratios, enhance ROE

The Receivables Exchange serves as a transparent, efficient capital marketplace for small and midsize businesses to gain access to affordable capital. Learn more about how companies are improving cash flow by financing accounts receivable at www.receivablesXchange.com.

About The Receivables Exchange
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 institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

¹Source: Wall Street Journal, average length of Days Sales Outstanding (DSO’s) of U.S. companies under $500m in revenues.

The Receivables Exchange CEO & Co-Founder Named Ernst & Young Entrepreneur of the Year® Finalist

Tue, 18 May 2010 13:08:00 GMT

NEW ORLEANS — May 18, 2010 — The Receivables Exchange, the world’s first online marketplace for real-time trading of accounts receivable, announced today that Co-Founder and CEO Justin Brownhill has been named a finalist for the Ernst & Young Entrepreneur of the Year® 2010 Award for the Houston and Gulf Coast Area Program. The award recognizes the contributions and achievements of those who inspire entrepreneurism with their vision, leadership and achievement.

“This E&Y award represents one of the single highest distinctions for business leaders globally, and I am extremely honored to be named among the finalists,” said Mr. Brownhill in response to his selection. “I am particularly proud to be named at a time when our region is experiencing such tremendous commercial growth, entrepreneurship and innovation. I share this recognition with my co-founder, Nic Perkin, and the entire team at The Receivables Exchange.”

A panel of esteemed judges evaluated Mr. Brownhill’s visionary leadership of The Receivables Exchange’s innovative product solutions, company accomplishments, corporate culture and financial growth. Over the past 24 years, the program has grown to recognize business leaders in over 135 cities in 50 countries throughout the world. Award winners will be announced during the Entrepreneur of the Year Award ceremony on June 24, 2010 at the Omni Houston Hotel Galleria in Houston, Texas.

Headquartered in New Orleans, The Receivables Exchange is the world’s first electronic capital market where small and midsize businesses (SMBs) can gain access to a flexible and affordable source of working capital by selling their receivables in a competitive auction marketplace. The Exchange is revolutionizing the $18 trillion receivables finance industry by bringing Buyers and Sellers directly together for the first time to trade receivables. Born out of Brownhill and Perkin’s fundamental belief that small businesses should have unfettered access to affordable working capital to fund growth, the Exchange has realized tremendous success. In January the Exchange announced its $17 million Series C financing led by Bain Capital Ventures with reinvestment from Redpoint Ventures and Prism VentureWorks.

The Receivables Exchange serves as a transparent, efficient capital marketplace for small and midsize businesses to gain access to affordable capital. Learn more about how companies are improving cash flow by financing accounts receivable at www.receivablesXchange.com.

About The Receivables Exchange

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 institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

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Small Businesses Find Alternative Funding Option for Growth Capital

Wed, 10 Mar 2010 12:00:00 GMT

Data shows businesses are improving cash flow by selling accounts receivable as online marketplace provides access to more than $20 billion in capital

The Receivables Exchange, the world’s leading online marketplace for real-time trading of accounts receivable, announced today that its market-based working capital solution experienced 100% quarter-over-quarter growth in receivables sold as of the end of 2009. With access to competitively-priced capital at their fingertips, many businesses are gaining access to capital for ninety-eight to ninety-nine cents on the dollar, on average.

As reported in the Federal Reserve's recent survey of senior loan officers, lending is expected to remain tight through the second half of 2010. As a result, small businesses are starting to settle into the new economic reality of reduced access to credit and are embracing alternative funding sources such as the Exchange. The Receivables Exchange’s market-based approach to selling receivables has helped it to broaden the reach of receivables finance to growing companies that would have never before considered the age-old form of business financing. Data from The Receivables Exchange indicates that businesses are embracing this new model of receivables financing as an affordable way to increase short-term liquidity and fund growth, without the constraints and high costs of traditional financing.

The Receivables Exchange has seen the amount of receivables sold double quarter-over-quarter, with an average auction size of $52,000. While most auctions last one day, the shortest auction closed in only 16 seconds. More than 750 companies representing more than 40 different industries and based in 47 states are registered to sell receivables through The Receivables Exchange. As other sources of business financing continue to dry up – or come at a very high price – the Exchange brings more than $20 billion of competitively-priced capital to the businesses participating in its online marketplace.

“We continue to see tremendous demand from companies looking to improve cash flow and position themselves for sustainable growth,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “By bringing receivables financing into an open, competitive marketplace, we’re able to bring affordable capital to companies that would have never before used their receivables to increase their liquidity and improve their financial performance.”

Optimism among small business has remained low. According to data released from the National Federation of Independent Business (NFIB), the Index for Small Business Optimism has been below 90% for 18 months, falling to 88% in December. With little to no access to funding, plans to make capital expenditures fell to 16%, revisiting the 35-year record low.

Small and midsize businesses are the engine that drives the American economy. Yet, for most companies, accounts receivable represent the most under-utilized asset on the balance sheet, with more than 60% of working capital tied up in outstanding invoices. The average turnover of receivables is 58.9¹ 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 growth. By selling their receivables on the Exchange, businesses 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.

Benefits of accounts receivable financing through The Receivables Exchange include:
•    Increased Liquidity: Access to cash in as little as 24 hours
•    Complete Control: Companies set all auction parameters, including minimum advance, maximum fee and auction duration.
•    Lower Cost of Capital: Competitive real-time bidding drives down cost
•    Improved Debt Position: Receivables are sold as an asset versus traditional lines of credit, which are balance sheet liabilities
•    Less Restrictive: No all asset liens, restrictive covenants or personal guarantees
•    Key Financial Benefits: Decrease Days Sales Outstanding (DSO), increase liquidity ratios, enhance ROE

The Receivables Exchange serves as a centralized capital marketplace for small and midsize businesses seeking alternative ways to finance growth and optimize their working capital management. Learn more about how companies are improving cash flow by financing accounts receivable at www.receivablesXchange.com.

About The Receivables Exchange
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 institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.

¹Source: Wall Street Journal, average length of Days Sales Outstanding (DSO’s) of U.S. companies under $500m in revenues.

The Receivables Exchange Closes $17 Million Series C Financing from Bain Capital Ventures

Tue, 26 Jan 2010 12:00:00 GMT

Online marketplace provides competitively priced capital to America’s small and midsize businesses, transforming an $18 Trillion marketplace and making receivables financing an attractive mainstream financing option for the B2B sector

NEW ORLEANS, January 27, 2010 - The Receivables Exchange (www.receivablesXchange.com), the world’s first online marketplace for real-time trading of accounts receivable, today announced that it has closed $17 million in Series C financing led by Bain Capital Ventures, with additional commitments from existing investors Redpoint Ventures and Prism Ventureworks. The Receivables Exchange pioneered the online receivables financing marketplace in 2008 with the launch of its proprietary receivables trading platform. The receivables finance industry represents an $18 trillion marketplace. Most companies have more than 60% of their working capital tied up in accounts receivable, limiting their ability to fund the growth of their businesses and contribute to the growth of the U.S. economy. On The Receivables Exchange, businesses are able to sell their accounts receivable at competitive terms to a global network of accredited institutional investors that compete in real time to purchase them.

Bain Capital Ventures is the venture capital affiliate of Bain Capital, one of the largest and most respected private investment firms in the world. Bain Capital Ventures is known for its exceptional approach to identifying and partnering with the management teams of early and growth stage entrepreneurial companies to build market leaders. The firm has invested in such industry-leading companies as LinkedIn, Staples, SunGard, DoubleClick, Instinet, SolarWinds, ProfitLogic, Archer Technologies, Shopping.com, Taleo, m-Qube, Aspect Development, Gartner Group and others.

The Receivables Exchange will use the funding to further scale its operations and sales activities and to significantly expand its marketing, business development and corporate partnership efforts. The company’s goal is to drive maximum awareness of its proven exchange-based receivables finance model among the millions of small and midsize businesses in the B2B sector. The Receivables Exchange will also continue to evolve its patent-pending trading platform and optimize customer lifetime value.

“Cash flow is one of the biggest considerations for most companies – and one of the greatest barriers to improving operating and financial performance,” said Jeffrey Schwartz, managing director of Bain Capital Ventures. “The Receivables Exchange is a game-changing innovation that we believe, based on our experience with hundreds of portfolio companies, can revolutionize the way businesses manage their cash flow and fund their day-to-day operations. The model has been proven and The Receivables Exchange is extremely well positioned to continue its growth and to integrate with other leading business finance applications. In the past year, this exceptional management team has delivered exponential growth and instituted the sound management practices we look for in our companies. We look forward to working with the team to solidify their stronghold and build a new capital marketplace.”

“We were fortunate to have significant interest from numerous well-respected, high-profile venture investment firms,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Bain Capital Ventures immediately stood out because of their track record of establishing long-term market leaders, particularly in the capital markets arena. And, their reputation of serving as a fully committed strategic collaborator is precisely the type of premier partner that we were seeking as we continue to scale and enhance the model. We are thrilled to have such a remarkable firm on our team.”

“Receivables financing is one of the oldest financing models in America and yet, until now, it has not been delivered as a viable, flexible cash management solution for mainstream American companies,” said Jeff Brody, founding partner of Redpoint Ventures. “We firmly believe that The Receivables Exchange is uniquely positioned to transform the $18 trillion receivables finance marketplace by further scaling their open, efficient and competitive marketplace. We look forward to continued success in our partnership with The Receivables Exchange and we are excited to welcome Bain Capital Ventures as a new partner."

“We take great pride in returning America's small and midsize companies back into the driver's seat of their business financing, allowing them to control when and at what price they increase their working capital,” said Nic Perkin, co-founder and president of The Receivables Exchange. “Over the past year, we were able to bring millions of dollars of competitively priced capital to hundreds of companies in the B2B sector. With this next round of financing, we look forward to helping hundreds of thousands of companies improve their financial performance by revolutionizing the way they manage their working capital.”

The Receivables Exchange connects Buyers and Sellers in a real-time auction marketplace to buy and sell receivables. By selling their receivables in an open and competitive marketplace, Sellers are able to reduce their cash conversion cycles, gain access to competitively priced capital and reinvest that cash into growing their business. Buyers gain access to a new investable asset class with attractive risk-adjusted returns and the opportunity to invest in the growth of the nation’s thriving small and midsize businesses.

About The Receivables Exchange
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 institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow their businesses. Buyers get direct access to an $18 trillion new investable asset; Sellers get access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers. For more information, visit www.receivablesXchange.com.

About Bain Capital Ventures
Bain Capital Ventures (www.baincapitalventures.com) is the Boston-based venture capital affiliate of Bain Capital, which has approximately $65 billion of assets under management worldwide. Founded in 1984, Bain Capital and its affiliates have made investments in more than 300 companies. The firm’s history of investing in early stage companies also dates back to 1984, having made over 125 venture-stage investments since inception including such companies as LinkedIn, Staples, SunGard, DoubleClick, Instinet, SolarWinds, ProfitLogic, Archer Technologies, Shopping.com, Taleo, m-Qube, Aspect Development, and Gartner Group. In 2001, Bain Capital Ventures was formed as a separate arm of Bain Capital to focus exclusively on growth investments. Bain Capital Ventures currently has approximately $1.5 billion in assets under management.

About Redpoint Ventures
Redpoint Ventures focuses on partnering with and funding innovative companies that have the potential to define, lead, and change industries. Redpoint partners have many decades of experience and success in technology investing; combined with this foundation, the firm is able to leverage a thriving network of entrepreneurs, partners, and industry experts to accelerate building market-leading companies. Redpoint (http://www.redpoint.com) was founded in 1999 by partners from two of the top firms in the venture capital industry and currently has over $2 billion under management. The firm is headquartered in Menlo Park, CA with offices in Los Angeles and Shanghai, China.

The Receivables Exchange Names Elaine O’Gorman Chief Marketing Officer

Wed, 09 Dec 2009 12:00:00 GMT

NEW ORLEANS, December 9, 2009 – The Receivables Exchange, the world’s leading online marketplace for real-time trading of accounts receivable, today announced that it has named Elaine O’Gorman as Chief Marketing Officer. O’Gorman is a highly regarded business leader and award-winning business-to-business (B2B) marketer, distinguished for her success in B2B brand building, high-volume customer acquisition, and profitable customer retention. O’Gorman’s role at the company will be to drive maximum awareness of The Receivables Exchange’s proven exchange-based receivables finance model, maximize business scalability, and optimize customer lifetime value.

Prior to joining the Exchange, O’Gorman led the marketing efforts of Silverpop Systems, a leading provider of innovative automation marketing software for B2B companies, where she was instrumental in achieving over 50 percent annual growth over her five year tenure. Prior to Silverpop, she led the email marketing and interactive efforts for the American Airlines website, AA.com. Under her leadership, AA.com’s email marketing and online efforts exploded, growing from an online niche division within the company to a major revenue driver for the airline.

“After conducting a comprehensive national search, Elaine stood out as the perfect candidate to build The Receivables Exchange brand into the “de facto” cash management solution for the B2B community,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Elaine has a very rare combination of operational, finance and marketing experience and a proven track record of establishing companies as category leaders, driving the scale and efficiencies necessary to deliver tremendous growth. We couldn’t be more thrilled to have her join our team to apply her wealth of experience as we build an entirely new capital marketplace for SMBs to fund their day-to-day operations.”

Throughout her career, O’Gorman has earned numerous accolades, including recognition in BtoB Magazine’s annual “Who’s Who” Edition and as a 2007 finalist for the Technology Association of Georgia’s “Woman of The Year in Technology.” She is a recognized business leader and active industry spokesperson at such venues as ad:tech, Shop.org, the Direct Marketing Association’s annual conference, and various technology-oriented forums. O’Gorman’s teams have been recognized with over two dozen awards including the BMA Ace awards, the SIIA CODiE awards, the IABC Golden Flame awards, the Best of SaaS Showplace awards, and PRSA Phoenix awards.

“The Receivables Exchange is a game-changing innovation, a perfect working capital solution to help businesses optimize their cash flow and improve their financial performance,” said O’Gorman. “Now more than ever, companies need direct and unfettered access to capital on their terms in order to grow. I am thrilled to join the team and lend my years of B2B expertise to advance the brand and bring this long-overdue solution to the widest possible audience.”

O’Gorman received a Bachelor of Science in Economics degree from the Wharton School. She continued her education at the University of Michigan earning an MBA from the Ross School of Business. She has been named a Certified Managerial Accountant and a Certified Project Manager (PMP).

Learn more about how The Receivables Exchange can help business to improve cash flow.

About The Receivables Exchange
The Receivables Exchange (www.receivablesXchange.com) is the world’s first online marketplace for real-time trading of accounts receivable. Changing the landscape of small business financing, The Receivables Exchange provides a new dimension in working capital management. The Exchange connects a global network of accredited institutional investors (Buyers) to the nation’s millions of small and midsize businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.