Electronic Invoice Marketplaces
Auction-based invoice finance has generated considerable interest within the finance industry because it provides new opportunities for companies to find alternative sources of liquidity and it also provides new opportunities for institutional investors to invest in short term receivables at attractive yields. The Receivables Exchange (“TRE”), established in 2007, was the first real-time online marketplace for working capital financing. Since that time, invoice auction markets have been started in many countries.
This whitepaper looks at the following:
1. What are Electronic Invoice Marketplaces?
2. How do they work?
3. Who are the parties to an Invoice Exchange and what are their Roles?
4. Investors and Benefits to Buying Assets an Exchange
5. Benefits and limitations of Auction-based finance
6. Market size and Current Players.