Congratulations to Vistage member company The Receivables Exchange (www.receivablesxchange.com), which won the WSJ Technology Innovation Award in e-commerce for a unique concept where small and mid-sized businesses can auction their receivables.
New Orleans-based The Receivables Exchange, lead by Vistage member Justin Brownhill, allows businesses to sell their receivables to a global network of institutional investors and access working capital in as little as three days. Typical remittance terms of 48 days, or as much as 180 days, make The Receivables Exchange a great financial tool for businesses.
Receivables Exchange aims to make it much easier for a company to tap the cash locked in its receivables. A company posts its unpaid invoices on the exchange, which screens the seller to make sure it has a minimum revenue and has been in business for at least two years. The screening can be completed within 24 hours and the invoices can be posted the next day. Bidders offer to buy some or all of the posted receivables, and the exchange takes commissions from the buyer and seller.
The company was launched in 2007 by Brownhill, a former investment banker who is now the organization’s chief executive, and Nicolas Perkin, its president. The exchange hosts between $1 million and $5 million in trades each day, a spokeswoman says.
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