Advantages of The Exchange vs. Banking
Banks have long been a staple of business financing, but bank loans often come with heavy fees and restrictive covenants.
| Bank Financing | The Receivables Exchange |
|---|---|
| Costly: Expect to pay additional fees--facility, unused line, early cancellation, to name a few--on top of the loan amount. | Affordable: Bank-competitive rates. Limited fees. |
| Low Control: Your company's credit limit is fixed. Getting an additional credit line can take months. | Full Control: Select which invoices you want to sell for cash. Choose the advance and discount rate you want. |
| High Risk: Requires personal guarantees, restrictive covenants and liens on all of your assets. | Low Risk: No personal guarantees, covenants, all-asset liens, and does not subordinate debt. We only take a lien on the receivables you are selling. |
| Extremely Inflexible: Fixed credit limits and extensive auditing requirements. | Superior Flexibility: Choose which invoices to sell and use the Exchange only when you need it. |
| Slow: Bank loans can take 90+ days to be funded. | Fast: Transactions happen in real time and you can get cash in as little as 24 hours. |