Credebt Exchange

Since its foundation in 2011, Credebt Exchange® has been purchasing invoices on a revolving basis from Originators that are members of the Exchange. These invoice, or Exchange Traded Receivables [ETR], are payable by the Originators’ customers, or Debtors.
Effective 16 January 2015, Credebt Exchange Limited, with company registration number IE501210, officially changed its name to Credebt Exchange Limited. Credebt Exchange will continue the Credebt Exchange business model and will add a new product that pays Originators’ suppliers, or Creditors, too. The improved business model of paying Creditor invoices and purchasing Debtor invoices, led to the creation of the word: Credebt.
This blended business model is called Convertibill™ and is designed to further enhance cash flow for the Credebt Exchange Originators whilst also reducing their overall cost of funds. This is achieved by enabling Originators to offer their suppliers ‘payment on demand’ for a nominal discount. The discount is then offset against the cost of selling their customer invoices.
Over the coming months, wherever the Credebt Exchange name appears, it will be replaced by Credebt Exchange. Both new and existing Credebt Exchange Originators will be invited to avail of the payment on demand service for their suppliers and to continue sell their customer invoices using the Convertibill™ product offering.
During 2015-Q1, the Credebt Exchange extended product offering for Investors will be marketed under the product name Investabill™. As a sophisticated financial marketplace that facilitates the sale and purchase of Loans or Bills as Exchange Traded Receivables [ETR] or Investabills™. These ETR Investabills™ will continue to trade and generate the working capital Originators require.

2014-Q4 ETR Briefing

Exchange Traded Receivables [ETR], are loans or bills, the “Investabills”, issued under Contract and such Investabill®  are payable by investment quality† companies, or credit insured Investabills from Investment Grade [IG] insurers. As at Q4, Credebt Exchange® held RSA of EUR 23.6m, with EUR 5.6m allocated and EUR 0.2m Investor redemptions requested. The full spectrum of available ETR was utilised.
Strong treasury management continues to improve ETR settlement to EUR 4.9m, or 78% of all outstanding trades.
Performance 2014-Q4 was the fourth quarter and first full year of trading for the Exchange. Total Debtors numbered 480+ with a total trade of EUR 18.8m to Y/E. Daily volume increased by 16% on the previous quarter. Highest single value trade was in November at EUR 0.18m. Total current RSA are valued at EUR 23.6m+
Trend Yield remained stable for the quarter at an average of 3.47%. Originator trading volumes increased by 16% with continues strong Originator supply expected for 2015. Additional capacity for RPA in excess of EUR 50.0m+ are expected in 2015 with new institutional demand of EUR 10.0m remaining confirmed during the quarter (subject to contract).

2014-Q4 ETR Briefing

† Investment quality is a combination of Investment Grade [IG] organisations & other credit worthy organisations, as determined by AIG and other credit rating providers, from time to time

2014-Q3 ETR Briefing

Exchange Traded Receivables [ETR], are invoices issued under Contract for goods and services supplied to investment quality† companies, or credit insured invoices from Investment Grade [IG] insurers. As at Q3, Credebt Exchange® held RSA of €21.8m, with €5.5m allocated and €0.6m Investor redemptions requested in the quarter. The full spectrum of available ETR was utilised.
Further Treasury improvement on ETR settlement at €4.4m, or 79% of all outstanding trades during the period. There continues to be no delinquent ETR recorded to date. Market conditions remain favourable and stable for 2014 to Y/E.
Performance 2014-Q3 was the third quarter of normal trading for Credebt Exchange®. Debtors increased to 390+ with the total trade value of €13.1m YTD. Daily volumes increased by 17% on the previous quarter, 2014-Q2. Highest single value trade was in July at € 0.38m. Total current RSA are valued at € 21.8m+.
Trend Yield remained stable for the quarter at an average of 3.614%. Originator trading volumes increased by 17% with strong Originator supply expected during 2014-Q4. Additional capacity for RSA in excess of €13.5m+ is expected in 2014-Q4 with new institutional Investor demand of €10.0m remains confirmed during the quarter (subject to contract).

2014-Q3 ETR Briefing

† Investment quality is a combination of Investment Grade [IG] organisations & other credit worthy organisations, as determined by AIG and other credit rating providers, from time to time

Irish Times Investor Article

2014-09-23 Irish Times – Investors can capitalise on companies’ need for cash
Options for decent returns on investments are thin on the ground. Buying invoices is becoming more attractive.  Getting a risk-free return may never have been more difficult for investors. Read more…
Fiona Reddan ©Irish Times 2014 Read on Irish Times website

100+ Retail Investors

Today the Exchange received funds from it’s one hundreth Retail Investor. In just twelve months since the first RSA/RPA Trade was executed, achieving 100+ Retail Investors demonstrates a strong appetite from the retail investment community for strong, short term cash-equivalents such as ETR….

2014-Q2 ETR Briefing

Exchange Traded Receivables [ETR], are invoices issued under contract for goods and services supplied to investment quality† companies, or credit insured invoices from Investment Grade [IG] insurers. As at Q2, Credebt Exchange® held RSA of €19.6m, with €4.7m allocated and €0.5m Investor redemptions requested in the quarter. The full spectrum of available ETR was utilised.
Strong treasury continues to improve ETR settlement at €3.0m, or 68% of all outstanding trades during the period. There continues to be no delinquent ETR recorded to date. Market conditions remain favourable and stable for 2014.
Performance
2014-Q2 was the fourth quarter of trading for Credebt Exchange®. Total Debtors numbered 350+ with a total trade value of € 12.2m to date. Daily volume increased marginally on the previous quarter, 2014-Q1. Highest single value trade was in June at € 0.17m. Total current RSA are valued at € 19.6m+
Trend
Yield trend stabilised early in the quarter at an average of 3.607%. Originator trading volumes increased slightly with strong Originator supply expected during 2014-Q3. Additional capacity for RSA in excess of €20.0m+ is expected in 2014-H2 with new institutional Investor demand of €10.0m confirmed during the quarter (subject to contract).

2014-Q2 ETR Briefing

† Investment quality is a combination of Investment Grade [IG] organisations & other credit worthy organisations, as determined by AIG and other credit rating providers, from time to time

Year-1 Success

Credebt Exchange® completed its first full year’s trading today and has much to celebrate. Careful, prudent management of supply and demand enabled the Exchange to manage an orderly market whilst meeting both Originator and Investor expectations as published. From the outset, the management of Credebt Exchange® stuck to its principal aims of of ensuring Investor funds are protected at all times and that Investors’ yield is delivered. Coupled with this core objective, the Exchange also ensured that intelligent finance was delivered to Originators and finally, that the Exchange grew in line with expectations.
As can be seen from the 2014-Q2 Briefing, demand and supply continue to grow in parallel. Intermediaries demonstrated continued support for Credebt Exchange® with increased Investor funding combined with many Investors deciding to re-invest both their principal and yield for a second year.
Originators continue to seek out Credebt Exchange® as an alternative non-bank finance provider specifically because of its ease of use and swift execution service provision. During 2014-Q2 Originators from wide and diverse industry cross-sections joined the Exchange with particular interest from recruitment, services and export oriented businesses. During the Summer months, it is expected that Originators will increase by 15-20% with a total of 60% growth in new Originators expected before year-end.
All in all, Credebt Exchange® has clearly demonstrated its flexibility and capability and looks forward to strong expansion during its second year of trading.

Non-Bank Finance

Since mid-2013, more than €10.0m of working capital has been provided to the numerous Irish micro-medium sized businesses trading on Credebt Exchange®.  Instead of using traditional lenders, savvy business owners choose to sell their invoices on Credebt Exchange® because it is more convenient, straightforward and less costly.
Dealing with traditional lenders like banks, factoring or invoice discounting companies is both time consuming and costly. In addition, because the business owner is borrowing, there are endless requirements for documentation coupled with onerous liens and personal guarantees.  Regularly, due to the circumstances of the business owner, the personal guarantee is insufficient and funding is refused.  When all of these factors are combined with stringent lending criteria, the outlook for business borrowers continues to look bleak.
The decline in funding and overdraft facilities available from traditional lenders has resulted in several innovative newcomers.  These new non-bank finance providers are slowly changing the business landscape by meeting explicit, once-off funding requirements. Operating in niche sectors of the market, the importance of these new providers has largely been ignored by the establishment.
Some non-bank providers specialise in either short or long-term lending with others preferring to offer project or venture based lending.  Online platforms have also emerged that offer supply chain finance, ad-hoc invoice based lending and receivables discounting too.  Notwithstanding the importance of these new non-bank providers, a viable alternative to the bank overdraft or invoice discounting facility is still a primary requirement.
The overdraft or invoice discounting facility is an essential tool for most businesses. Where non-bank lending or ad-hoc trading in invoices may improve cash flow, it lacks certainty.  Business owners need absolute certainty on the availability of working capital to ensure continued operational success.  Nowhere is this more prevalent than in the micro-medium sized business sector.
Where these innovative non-bank finance providers can solve some liquidity issues, they do not offer, or attempt to replicate, the certainty provided by an overdraft facility.  Also, shrewd business owners will quickly identify that the fees and annual interest charges of 12-25% rule out the possibility of regular use.  In response to this, an alternative to the traditional overdraft or invoice discounting facility quietly entered the market last year.
The Credebt Exchange® non-bank finance replaces the overdraft seamlessly by providing intelligent finance with certainty.  As opposed to a lending model, the Exchange uses a selling model that dispenses with the liens and frustrations of the lending industry.  As a wholesale marketplace with both buyers and sellers, Credebt Exchange® is charged with ensuring liquidity and affordable funds availability.
Buyers on the Exchange are Investors with excess capital seeking a yield and business owners, as the Originators of invoices, are the sellers.  Credebt Exchange® negotiates and strikes deals on a daily basis by matching Investors’ buy to Originators’ sell orders.  To manage an orderly market, Originator sell offers are filled according to specific funding allocation dates that are published on the Credebt Exchange® website.  On each allocation date the Exchange agrees to provide the Originator’s total annual working capital requirement and thereby provides the funding certainty they need.
The working capital requirement of the Originator dictates the total value of invoices they must sell in any given year.  Unlike traditional lending models, the Originator is not required to sell their ‘whole book’ and nor do they provide any liens or personal guarantees.  The Originator simply selects the Debtors whose invoices they wish to sell and Credebt Exchange® buys them on behalf of Investors on the Exchange. As a percentage of turnover, funding costs tend to be 0.5% – 5.0% per annum.
With the Exchange projecting trade of €35.0m by year end, this is a compelling alternative to the overdraft or invoice discounting facility.  Any micro-medium sized business owner in need of working capital should certainly consider this new non-bank finance as an option.  Providing intelligent finance in today’s market without the need for liens or personal guarantees is a welcome and well-conceived alternative. Credebt Exchange® is quietly maintaining its orderly market whilst also having the potential to disrupt the traditional lending market beyond recognition.

2014-Q1 ETR Briefing

Exchange Traded Receivables [ETR], are invoices issued under Contract for goods and services supplied to investment quality† companies, or credit insured invoices from Investment Grade [IG] insurers. As at Q1, Credebt Exchange® held RPA of €5.2m, with €3.2m allocated and €1.0m Investor redemptions requested in the quarter. The full spectrum of available ETR was utilised.
Strong treasury management improved ETR settlement to €2.4m, or 68% of all outstanding trades during the period. There continues to be no delinquent ETR recorded to date. Market conditions are favourable and stable for 2014.
Performance
2014-Q1 was the third quarter of trading for Credebt Exchange®. Total Debtors numbered 280+ with a total trade value of € 8.1m to date. Daily volume declined for the period at 25+ due to i-ETR suspension. Highest single value trade was in January at € 0.25m. Total current RSA are valued at € 15.5m+
Trend
Yield trending downwards at an average of 3.75% during the quarter. Originator trading volumes remained unchanged, with significant Investor redemption requests in January. Originator demand remains strong for 2014. Additional capacity for RPA in excess of €25.0m+ are expected in Q2-2014, subject to Institutional Investor demand.

2014-Q1 ETR Briefing

† Investment quality is a combination of Investment Grade [IG] organisations & other credit worthy organisations, as determined by AIG and other credit rating providers, from time to time

Exchange to Bank Reconciliation