As CIT Failure Threatens America’s Small and MidSize Businesses, New Online Financial Marketplace Stands Ready to Fill the Liquidity Gap

With $20 Billion in liquidity, The Receivables Exchange is an open door of opportunity in a time of financial obstacles

With small and mid-size businesses (SMBs) already feeling the pain of the credit crunch for some time now, the instability of CIT represents yet another blow to the financing sources of the small and mid-market business community. As the economy falters and large finance organizations become less reliable, small and mid-market businesses have begun to seek out alternative sources of financing. As recently reported by The Receivables Exchange’s second quarter 2009 Cash Flow Index, small and mid-market businesses are signing up to tap into the $20 billion of liquidity available on the Exchange’s centralized marketplace for receivables financing.

“In the current economic climate, SMBs are already operating under a tremendous number of constraints while trying to effectively run their businesses, and a disruption of this magnitude could result in a costly and potentially perilous distraction,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “We welcome small and mid-market businesses nationwide to The Receivables Exchange to help them solve their short-term financing needs through our market-based solution that can be counted on to provide a diversified source of liquidity at competitive rates.”

The Receivables Exchange has experienced growth of 300% in accounts receivable financing on the company’s receivables trading auction platform over the past quarter. At The Receivables Exchange, small and midsize businesses can sell their receivables on its online marketplace to a global network of major institutional investors. The Receivables Exchange provides a flexible, alternative source of small business financing.

“Now more than ever, businesses are eager for an alternative financing source,” says Nic Perkin, co-founder and president of The Receivables Exchange. “For the first time we put businesses back in control of their cash flow so that they are less reliant on a single-source provider of liquidity. Small businesses can now look past the looming economy and focus on the day-to-day operations of their company.”

“Instead of the typical 50 – 60 days that most companies wait for their outstanding invoices to be paid, at The Receivables Exchange, companies can post their receivables one day and receive their funds the next business day,” added Mr. Brownhill. “It reduces the wait for payment from 50 days to as little as 24 hours and allows them to quickly improve their cash liquidity.”

For more information on the struggles facing small and mid-sized businesses follow The Receivables Exchange blog, Capital Matters.

About The Receivables Exchange

The Receivables Exchange (www.receivablesXchange.com) is the world’s first online marketplace for real-time trading of accounts receivable. Changing the landscape of small business financing, The Receivables Exchange provides a new dimension in working capital management. The Exchange connects a global network of accredited institutional investors (Buyers) to the nation’s millions of small and mid-sized businesses (Sellers) in search of capital to grow. Buyers get direct access to an $18 trillion new investable asset; Sellers gain access to a new competitive working capital management solution by having their receivables bid on in real-time by multiple Buyers.
Contacts

The Receivables Exchange
Laurie Azzano, 415-786-3317