Receivables Exchange announced this week that they and Coupa – the cloud based e-procurement player – have combined forces to offer small and medium enterprises greater access to working capital through the Exchange’s innovative cash flow solution. The Receivables Exchange allows suppliers to auction their receivables invoices to gain on average 98-99% of their value – according to the Exchange – and receive full value in as little as 2 days.
Justin Brownhill, co-founder and CEO of the Exchange commented on the news of the deal: “The Receivables Exchange is the working capital marketplace of choice for small and midsize business, and this partnership brings our innovative cash flow solution to a large network of suppliers in need of short-term liquidity. As the Exchange continues to redefine business financing, we are excited to work with a company that shares our dedication to improving working capital management for small businesses. By partnering with Coupa, we’ve made it easier than ever for Coupa Suppliers to shorten their DSO, strengthen their cash position and fund growth”
Vice President of Alliances at Coupa, Tony Dawson echoed the enthusiasm. “As part of our mission to streamline our customers’ invoicing and working capital management, Coupa is excited to partner with The Receivables Exchange to bring a flexible, affordable cash flow solution to the suppliers using our system.” he commented. “The Receivables Exchange opens the doors to billions in liquidity for businesses that have traditionally had few options for leveraging their invoices into working capital. The invoices on our platform are high-quality receivables from some of the world’s biggest companies. By selling those investment-grade invoices on the Exchange, Coupa Suppliers will be able to easily convert them into cash, so they can take control of working capital and fuel growth.”
This is one of the most imaginative financial supply chain models around and the synergy between The Receivables Exchange and Coupa makes this a great tactical move for both parties.