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Spend Management Enabler, Online Exchange Team to Help Suppliers Battle Financing Crunch
Ariba and The Receivables Exchange join forces to provide suppliers with faster access to capital at competitive rates through receivables auctioning solution
Sunnyvale, CA — December 9, 2008 — Spend management solution provider Ariba is teaming up with The Receivables Exchange, the world's first online marketplace for real-time trading of accounts receivable, in a partnership aimed at helping suppliers around the world battle the global financing crunch.
Under the terms of a newly signed agreement, the companies will team to provide suppliers with access to competitively priced capital through a receivables auctioning solution accessed via the Ariba Supplier Network.
"It's estimated that more than half of all companies with under $1 billion in revenues depend on secured and unsecured lines of credit to feed their short term cash needs. Unfortunately, in today's economy, this is exactly the type of credit that is becoming less and less available," said Bob Solomon, senior vice president and general manager with Ariba Supplier Network. "By joining forces with The Receivables Exchange, Ariba can provide suppliers with an alternative source of funding that enables them to maintain the strength and competitiveness of their operation in both the short and long term."
Changing the landscape of business financing, The Receivables Exchange connects suppliers (member sellers) to a global network of accredited investors (receivables buyers) who compete in a real-time auction marketplace to buy their receivables. Ariba will provide access to The Receivables Exchange through its Supplier Network, enabling members to transfer their receivables from the network to the Exchange for auction.
Ariba said that its Supplier Network combines technology and services to better match buyers and suppliers, automate transactions and optimize payments. Buyers and suppliers in 115 countries leverage the network to engage in transactions worth more than $110 billion a year and process one purchase order every two seconds, according to the solution provider.
Leveraging the network will allow suppliers to lower the cost, risk and time associated with accessing capital, Ariba said.
"The Receivables Exchange and Ariba share a common vision: to help companies optimize their working capital management to improve their business and financial performance," said Justin Brownhill, co-founder and CEO of The Receivables Exchange. "By working together, we will be able to help even more businesses maximize the efficiency of their working capital. Ariba and The Receivables Exchange will be a powerful combination to help America's small and midsize companies realize even greater growth."
Voices from the Blogosphere: For additional perspective on the Ariba-The Receivables Exchange, see the comments by Spend Matters über-blogger Jason Busch here.
Under the terms of a newly signed agreement, the companies will team to provide suppliers with access to competitively priced capital through a receivables auctioning solution accessed via the Ariba Supplier Network.
"It's estimated that more than half of all companies with under $1 billion in revenues depend on secured and unsecured lines of credit to feed their short term cash needs. Unfortunately, in today's economy, this is exactly the type of credit that is becoming less and less available," said Bob Solomon, senior vice president and general manager with Ariba Supplier Network. "By joining forces with The Receivables Exchange, Ariba can provide suppliers with an alternative source of funding that enables them to maintain the strength and competitiveness of their operation in both the short and long term."
Changing the landscape of business financing, The Receivables Exchange connects suppliers (member sellers) to a global network of accredited investors (receivables buyers) who compete in a real-time auction marketplace to buy their receivables. Ariba will provide access to The Receivables Exchange through its Supplier Network, enabling members to transfer their receivables from the network to the Exchange for auction.
Ariba said that its Supplier Network combines technology and services to better match buyers and suppliers, automate transactions and optimize payments. Buyers and suppliers in 115 countries leverage the network to engage in transactions worth more than $110 billion a year and process one purchase order every two seconds, according to the solution provider.
Leveraging the network will allow suppliers to lower the cost, risk and time associated with accessing capital, Ariba said.
"The Receivables Exchange and Ariba share a common vision: to help companies optimize their working capital management to improve their business and financial performance," said Justin Brownhill, co-founder and CEO of The Receivables Exchange. "By working together, we will be able to help even more businesses maximize the efficiency of their working capital. Ariba and The Receivables Exchange will be a powerful combination to help America's small and midsize companies realize even greater growth."
Voices from the Blogosphere: For additional perspective on the Ariba-The Receivables Exchange, see the comments by Spend Matters über-blogger Jason Busch here.
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