Why Buy Receivables?
The Receivables Exchange provides institutional Buyers with an efficient vehicle for broadening their short-term holdings. Buyers from around the world, including commercial banks, hedge funds and asset-based lenders, can purchase trade receivables from a variety of Sellers, thereby reducing their overall risk while providing opportunities to deploy short-term capital.
| Attractive Opportunity | Diversification Risk | Efficient Platform |
|---|---|---|
|
Deploy short-term credit |
Broaden reach |
Reduce origination costs |
| Economics generally superior to opportunities of similar credit quality and term |
Limit credit risk to Buyer; Seller must typically repurchase invoice after agreed upon deemed dispute |
No commitments; Flexibility to rapidly adjust risk profile by modifying monthly trading volume OR by adjusting purchases to favor a new mix of Sellers and invoice obligors |
| Access to the Exchange's network of Sellers across a wide spectrum of industries and credit profiles | Freedom to participate in auctions at any desired level; Bid for the entire basket of the Seller's auctioned receivables OR for a partial interest in the lot | Effortless trading; Intuitive electronic platform provides convenient access to critical data and allows Buyers to enter positions with just a few keystrokes |
| Reduction in legal and structuring costs resulting from standardized program | Simplified back office administration resulting from The Receivables Exchange's participation in payment collections, cash management and dispute resolution |