The Nation’s Small and Midmarket Businesses brace for looming fallout of CIT

The Receivables Exchange, which has seen an increased use of receivables financing by businesses of all sizes and across more than 40 industries, reported quarter-over-quarter growth of more than 190% on the third quarter 2009 Cash Flow Receivables Index. Businesses are signing on to tap into the $20 billion of liquidity available on the Exchange’s transparent centralized marketplace for receivables financing.

“The working capital limitations small and midsize companies are facing is unprecedented,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “The demise of CIT will only exacerbate the struggle for these companies. For our economy – and the small and midsize companies that drive it - to fully recover, it is imperative that they have broad access to small business financing. The Receivables Exchange provides a market-based solution that delivers an efficient source of liquidity at competitive rates.”

At The Receivables Exchange, small and mid-size businesses can sell their receivables on its online marketplace to a global network of accredited institutional investors. The Receivables Exchange provides a flexible, alternative source of receivables financing.

Most businesses wait 60⁺ days to receive payment on their outstanding invoices - many even longer as their larger customers are slowing down payments to meet their own cash flow needs. Members of The Receivables Exchange no longer have to wait for prolonged periods for their outstanding invoices to be paid. On the Exchange, companies can post their receivables one day and receive their funds the next business day.

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.

The Receivables Exchange
Laurie Azzano, 415-786-3317
laurie@receivablesxchange.com