The Receivables Exchange’s Membership Exceeds $2 Billion in Final Days of Charter Membership Program

NEW ORLEANS--(BUSINESS WIRE)--The Receivables Exchange (www.receivablesXchange.com), the world’s first online marketplace for real-time trading of accounts receivable, today announced that its Charter Member program has surpassed more than $2 billion in accounts receivable turnover since commencing its sales initiatives six months ago. In the midst of the ongoing credit crunch, growing small and mid-sized businesses are signing up to become Charter Members to take advantage of the waived registration fees and a 50% discount in transaction fees in advance of the company’s November 17 launch. The Charter Member program will end on November 16, 2008.

Forty two percent of small business owners report that they have experienced cash flow problems over the past 90 days¹. As the global credit crisis squeezes otherwise healthy small and mid-sized businesses, companies are eager to uncover ways to generate additional cash flow through alternative funding sources. At The Receivables Exchange, America’s small and mid-sized businesses (Sellers) are able to increase their liquidity and better manage their working capital by having their receivables bid on in real time by a global network of institutional investors (Buyers).

“We founded The Receivables Exchange to help businesses turn their outstanding receivables into capital so that it can be reinvested to take advantage of continued growth opportunities,” said Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Small and mid-sized companies are the engine that drives this economy, and many are unknowingly tying-up their hard-earned capital as 90-day interest free loans otherwise called receivables. With the credit crunch intensifying, it is more important than ever that these businesses have access to working capital management solutions that help them unlock additional revenue and continue on a path of growth and expansion.”

The single largest source of working capital for America’s small to mid-sized businesses is often tied up in outstanding invoices. The average turnover of these receivables is approximately 44 days. This means that most businesses cannot access this capital for more than two months, effectively extending their customers free credit and turning away opportunities to expand their business.

In the United States, there is more than $25 trillion in accounts receivable annual turnover; yet less than one percent of that volume is currently being financed. The Receivables Exchange’s patent-pending online marketplace brings together a global network of accredited institutional investors (Buyers) with millions of America’s growth-oriented small and mid-sized businesses (Sellers) in search of capital to help them grow.

Charter Members range from under $10 million to over $150 million and represent a diverse group of industries, including manufacturing, technology, transportation, distribution and staffing. All Seller Members realize the strategic advantage of turning their accounts receivable into working capital, particularly in today’s troubling credit crunch. For more information about The Receivables Exchange and its Charter Membership program, please visit www.ReceivablesXchange.com/Membership.

About The Receivables Exchange

The Receivables Exchange (www.ReceivablesXchange.com) is the world's first online marketplace for real-time trading of accounts receivable. The Receivables Exchange provides a new dimension in working capital management by connecting private companies to a global network of accredited Buyers who compete in real time to buy and trade receivables. Exchange participants benefit from flexible access to working capital finance at competitive rates. The Receivables Exchange is a fast and efficient way to manage working capital at a fraction of traditional financing costs. The Receivables Exchange has secured financing from Prism VentureWorks and Fidelity Ventures, the venture capital arm of Fidelity Investments. The Exchange's trading platform is proprietary and patent-pending. For more information, visit www.ReceivablesXchange.com.

¹ Discover Small Business Watch Report, September