The Receivables Exchange, an online marketplace for real-time trading of accounts receivable, has introduced an integrated working capital solution delivered through Ariba, a spend management solutions provider.
In an effort to help suppliers convert receivables into cash, the company is providing direct access to its receivables trading platform to the more than 250,000 companies that leverage the Ariba Network to transact more than $100 billion in business annually.
With the release of Ariba Network platform, Ariba Suppliers can connect directly to The Receivables Exchange, enabling them to transfer their invoices from the Ariba Network to the exchange’s trading platform for auction. Leveraging a cash optimizer tool embedded in the release of the Ariba Network, suppliers can calculate their cash needs as compared to their eligible outstanding invoices and select the invoices they want to sell to help them optimize their working capital management and improve their cash flow.
Joe Fox, senior director of network and financial solutions at Ariba, said: “It used to be that suppliers were stuck if they couldn’t free up cash through early payment or access third-party financing. Our cash optimizer tool eliminates this problem by providing suppliers with a full view into their liquidity options so that they can auction receivables as needed to fuel their operations and growth plans.”
Justin Brownhill, co-founder and CEO of The Receivables Exchange, said: “By integrating our receivables trading platform with the Ariba Network, we have created a seamless process by which thousands of suppliers can gain access to more than $20 billion in liquidity and drive down their cost of capital. As a result, they can quickly inject liquidity into their business and improve their cash flow management.”
