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For small to mid-sized businesses increasing cash flow is vital for both operations and growth. The companies always need ready money for their working capital. The Receivables Exchange allows these businesses to gain access to liquidity quickly and optimize their working capital management. Cash flow is the blood of a business. Think about it-blood flows in and out of the heart, keeping all the parts of the body alive and running. A business needs money flowing in and out to also stay alive and thrive. The problem comes when there is more going out than coming in. The companies start facing problems when their liquidity starts turning into negative. Among small to mid-sized businesses across the country, there are trillions of dollars in accounts receivable that are doing absolutely nothing for the businesses. Accessing this non-working capital before the customer (account debtor) pays the invoice gives small to mid-sized business owners the freedom to grasp opportunities. Businesses now days are always in need of cash and look for various alternates to raise funds. To improve liquidity flow, factoring invoices is a common practice where the Factor buys the accounts receivable and receives a fee for making the funds instantly available to the Seller. If a small to mid-sized business is considering improving their cash flow, there is a similar finance method that is more advantageous to the Seller where they can control their own terms. So, what is The Receivables Exchange? It is a receivables auction trading platform. Essentially, it is an online marketplace where business owners can list the invoices of their customers (account debtors). Then accredited institutional investors across the globe can bid to purchase the invoices that meet their criteria-all in real-time. Now, the good thing about this real-time auction method is that the seller gets to set the discount fee, minimum advance amount and which invoices he wants to sell to improve cash flow. Prior to The Receivables Exchange, financial institutions set these amounts and dictated the invoices that would be included in the financing, leaving the Seller with far less control. To keep a small to mid-sized business viable, the owner needs to get as much working capital as he can for as little cost as possible. By selling their receivables on the Exchange they can improve their liquidity quickly and efficiently, obtain a competitive cost of capital and control their own financial future. The company based in New Orleans uses cash flow factoring to help business across the globe to meet their financial requirements by selling their accounts receivables. To know more about this concept, visit http://www.receivablesxchange.com
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