Factoring Blog - For Small Businesses

What about an exchange (like a stock exchange) where you can list your receivables? That’s exactly what two individuals have in mind. 

They are launching “The Receivables Exchange,” or TRE, in the first quarter of 2008, according to Inc.com:

Founded by Justin Brownhill and Nic Perkin, TRE aims to change the factoring model altogether. The exchange will allow companies to offer their receivables to dozens of factoring companies at once, along with hedge funds, banks, and other “liquidity providers,” in TRE’s parlance. These lenders will bid on the invoices, which can be sold in a bundle or one at a time. The increased competition, Brownhill and Perkin say, will make it easier and cheaper for growing companies to raise working capital. “We hope to allow companies to grow quicker, faster, better than they otherwise would,” says Brownhill, the exchange’s CEO.

It’s an interesting concept, although my guess is it will take a while to get off the ground.  Having set up some “exchanges” in my day, I wouldn’t relish the idea of doing it again.  You have to attract two audiences.  In this case, it’s the  companies that want to list their invoices, and then factors that want to buy the invoices.  A dual sales job — always a tough thing.

But it will be interesting to see where it goes, when it is launched.

This entry was posted on Tuesday, February 5th, 2008 at 12:26 am and is filed under Factoring News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.