The Receivables Exchange Launches Nationwide Program to Reduce America’s Small Business Liquidity Gap

As the credit crisis continues to pummel small and midsize businesses (SMBs), companies are placing a greater importance on identifying and diversifying their financing sources. The Receivables Exchange announced today that it has launched the Receivables Advisors Program (RAP), a nationwide program to establish Receivables Advisors in all 50 states to help small and midsize businesses increase their short-term financing options.

Receivables Advisors will work independently in each state to connect eligible Sellers to The Receivables Exchange to help them tap into the $20 billion of liquidity available on the Exchange’s centralized marketplace for receivables financing. As a part of the program, The Receivables Exchange will provide Receivables Advisors with a commission-based compensation structure and provide them with sales and marketing tools, product training, and customer support and technical assistance.

As recently reported by The Receivables Exchange’s second quarter 2009 Cash Flow Index, as large finance organizations become less reliable, small and mid-market businesses have begun to seek out alternative sources of financing. Over the past quarter, The Receivables Exchange has experienced growth of 300% in accounts receivable financing on the company’s receivables trading auction platform. At The Receivables Exchange, small and midsize businesses can sell their receivables on its online marketplace to a global network of major institutional investors. The Receivables Exchange provides a flexible, alternative source of small business financing.

“Events in the financial services industry and the economy as a whole has served as a loud wake-up call for many small and midsize businesses to the importance of diversifying their funding options so that they are not reliant on a single source of working capital,” said Nic Perkin, co-founder and president of The Receivables Exchange. “The Receivables Advisor program was created to help even more companies to solve their short-term financing needs through our market-based solution that can provide a diversified source of liquidity at competitive rates.”

“Instead of the typical 50 days that most companies wait for their outstanding invoices to be paid, at The Receivables Exchange, companies can post their receivables one day and receive their funds the next business day,” added Mr. Perkin. “Suddenly, companies can increase their working capital in as little as 24 hours to quickly improve their cash liquidity."

For more information about the Receivables Advisor Program (RAP), click here.