Why Buy Receivables?
The Receivables Exchange provides institutional Buyers with an efficient vehicle for broadening their short-term investment portfolios. Buyers from around the world, including commercial banks, hedge funds and asset-based lenders, can purchase trade receivables from a variety of Sellers, thereby reducing their overall risk while generating short-term returns.
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Attractive Returns |
Portfolio Diversification |
Efficient Platform |
|---|---|---|
| Offers attractive, risk-adjusted returns on short-term capital | Broadens investor reach into corporate trade receivables | Reduces origination costs of trade receivable assets |
| Annualized returns generally superior to investments of similar credit quality and term | Limited credit risk to Buyer; Seller must typically repurchase invoice after agreed upon deemed dispute | Guaranteed minimum fee to Buyer if invoice pays earlier than anticipated |
| Access to the Exchange's network of Sellers across a wide spectrum of industries and credit profiles | Freedom to participate in auctions at any desired level; Bid for the entire basket of the Seller's auctioned receivables OR for a partial interest in the lot | No commitments; Flexibility to rapidly adjust risk profile of investment portfolio by modifying monthly trading volume OR by adjusting purchases to favor a new mix of Sellers and invoice obligors |
| Reduction in legal and structuring costs resulting from standardized program | Simplified back office administration resulting from The Receivables Exchange's participation in payment collections, cash management, and dispute resolution | Effortless trading; Intuitive electronic platform provides convenient access to critical data and allows Buyers to enter positions with just a few keystrokes |