Source: The Receivables Exchange
The Receivables Exchange, the world's first online marketplace for real-time trading of commercial receivables, announced today the launch of its Corporate Auctions program. The Exchange also announced that a Top 10 Fortune 500 company has signed on as one of the first Sellers
Adoption of The Receivables Exchange as a working capital solution by leading global brands marks the launch of the Exchange's second standardized receivables-based trading product. On the Exchange, the world's largest companies can sell their receivables to a diverse pool of institutional investors in competitively-priced auctions.
The Corporate Auctions program is geared toward Fortune 1000 companies seeking a modern market-based working capital solution as an alternative to the more restrictive receivables securitization and commercial paper markets. All receivables sold on the Exchange constitute a "true sale" of the asset, a compelling feature as large corporations seek ways to improve their liquidity and balance sheets. By adding Corporate Auctions to its receivables marketplace for small and midsize businesses (SMBs), the Exchange is quickly becoming a mainstream cash management tool for companies of all sizes.
For Buyers, the Exchange provides unprecedented access to an attractive, sizeable, liquid marketplace of commercial receivables. Because most account debtors in the Corporate Auctions program are large multinational companies with significant public equity capitalization or public debt, Buyers on the Exchange will find underwriting and bidding a seamless and efficient process. With cash and other short-term instrument yields hovering at record low rates, the Exchange's Corporate Auctions program will allow institutional investors to access a new short-term asset class offering attractive, risk-adjusted investment returns.
"Welcoming the world's largest companies into our family of Sellers is a tremendous honor, and a testament to the value that our real-time centralized receivables marketplace brings to working capital financing," said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. "With the launch of Corporate Auctions, the Exchange is helping companies of all sizes meet their cash needs, whether for operations, strategic growth, or to improve their financial performance."