What they have done is create a market for your receivable accounts. If you
run a small business, and do business with larger businesses, that pay
sometimes 90 days out from when you invoice them, you now have a solution to
get your money sooner. You submit your receivable to their marketplace where
companies bid on paying you now for your future receivable. You accept the
bid that works best for you. You get your money now to use in your business.
RX makes money in fees just like a stock broker and the company winning the
bid is paying you a little less now than you would have received in the
future as their profit for doing this.
The cost of money to you here is, in most cases, less than going through
than a bank and probably quicker. What they have done here is truly
innovative and companies across America realize it and are using the
exchange everyday.
It is the exact opposite of what you discovered "slicing and dicing" through
the marketing. Small contractor X selling his receivable from GE that won't
come for 120 days for, say a %5 discount for payment now , is far different
than the small collection company you portray them as. I don't meant to piss
anyone off but it might be beneficial to do more research before tearing the
down the companies that are helping to build the tech economy in New
Orleans.
Christopher Johnston
On Tue, Apr 20, 2010 at 4:12 PM, Ron Johnson <ron.l.johnson@cox.net> wrote:
> On 2010-04-20 14:36, Mike Walker wrote:
>
>> exciting things going on at the Receivables Exchange. I joined a few
>>
>
> After reading the web site and slicing through the marketing, it seems that
> what RX does is broker uncollectable debt from small businesses to scavenger
> collectors, probably at a steep discount.
>
> Doesn't sound as glamorous as "Receivables Exchange", but someone's got to
> do it...
>
>
> --
> Dissent is patriotic, remember?
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Received on 04/21/10
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