Joseph Leone Joins Distinguished Board of Advisors of The Receivables Exchange
The Receivables Exchange, the electronic exchange that allows companies to access working capital by selling commercial receivables to institutional buyers, today announced that Joseph Leone, former vice chairman and chief financial officer of CIT Group, has joined the company’s Advisory Board. Leone is a nationally recognized expert in commercial lending to the small and midsize business (SMB) market who brings more than 24 years of experience with CIT, one of the nation’s largest SMB lenders.
As the newest addition to The Receivables Exchange’s distinguished Advisory Board, Leone joins other prominent experts in commercial finance and financial markets from the business, academic and legal communities. Leone joins the Exchange’s Advisory Board as it continues to redefine receivables financing through the creation of an electronic capital marketplace for the nation’s small and midsize businesses to buy and sell receivables. The Receivables Exchange’s receivables marketplace was recognized this year by the Wall Street Journal as the leading e-commerce innovation worldwide for 2010.
“As we continue to grow our online marketplace for receivables financing, we are fortunate to have one of the most experienced and respected leaders in traditional commercial lending join our Board of Advisors,” said Nic Perkin, co-founder and president of The Receivables Exchange. “Long before we brought SMB finance online, Joe was successfully serving SMBs at the nation’s leading commercial lender, CIT. Joe’s broad experience with many facets of financial services makes him a highly valuable addition to our team.”
Leone comes to the Exchange’s Advisory Board after a distinguished career in financial services. At CIT, Leone held several senior-level positions, including vice chairman and chief financial officer. As CFO, he headed the accounting, tax, treasury, investor relations, corporate development and insurance groups. Leone also served as principal accounting officer, executive vice president of sales financing, and senior vice president and controller at CIT, and held executive positions with financial services companies Manufacturers Hanover Trust (MHT) and KPMG Peat Marwick.
“The Receivables Exchange has created an innovative financial solution for receivables finance by giving businesses the flexibility to access capital when they need it, on their terms,” Leone said. “It’s a smart solution that businesses – particularly small and midsize businesses – need. I’m excited to be advising a company that is creating a new market for SMBs to access affordable capital.”
The Receivables Exchange allows 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 small and midsize businesses (by 30%, on average), giving them access to a flexible, affordable funding source. By purchasing receivables on the Exchange, institutional investors diversify their portfolios by investing in the $17 trillion U.S. receivables market.
Called the most innovative e-commerce company in the world for 2010 by The Wall Street Journal, The Receivables Exchange has experienced tremendous growth since its founding in 2007, and continues to be recognized for its impact in the financial services sector. This past July, the Exchange was named to Institutional Investor magazine’s 2010 “Tech 40” list, and CEO and Co-Founder Justin Brownhill was selected a Regional Finalist for the Ernst & Young “Entrepreneur of the Year” Award and a National Finalist for the American Business Awards. In August, the company announced that trading volume on its market-based platform increased 300% YTD as of July 31.