Rental industry veteran Donald Charbonnet said this week he has partnered with The Receivables Exchange — the world’s first online marketplace for real-time trading of accounts receivables — to bring this financial solution to small and midsize businesses as part of its Receivables Advisors Program.
“I’ve been in equipment rentals for over 40 years, and every growing business along the chain has the same problem — cash flow,” Charbonnet said. “The Receivables Exchange is the perfect solution to give these companies access to a flexible and affordable source of capital when they need it. By bringing receivables finance into a market-based competitive bidding marketplace, the Exchange makes it possible for growing companies to thrive, even in the most challenging of times.”
The Receivables Exchange allows small businesses to sell their receivables to investors in a competitive online marketplace, giving them speed, flexibility and a competitive cost of capital. The efforts of Charbonnet and other Receivables Advisors have contributed to healthy growth at the Exchange. The company posted 66-percent month-over-month growth in receivables sold in March 2010, with a higher rate of adoption by small and midsized businesses. These businesses are freeing up cash at an average of 98 to 99 cents on the dollar.
Charbonnet has spent his entire professional career in the rental industry, starting with his family business in New Orleans, and then playing a pivotal role in the expansion of companies such as Buckner Rental Service and Neff Rental, as well as starting and managing several other businesses.
The Receivables Advisors Program is a nationwide program launched by The Receivables Exchange to establish Receivables Advisors in all 50 states to help small and midsize businesses increase their short-term financing options. Charbonnet will work independently to connect eligible sellers to the exchange to help them tap into the $20 billion of liquidity available on the exchange’s marketplace.
The Receivables Exchange lists the following as benefits of accounts receivable financing:
· Increased liquidity: Access to cash in as little as 24 hours;
· Complete control: Companies set all auction parameters, including minimum advance, maximum fee and auction duration;
· Lower cost of capital: Competitive real-time bidding drives down costs’
· Improved debt position: Receivables are sold as an asset versus traditional lines of credit, which are balance sheet liabilities;
· Less restrictive: No all-asset liens, restrictive covenants or personal guarantees;
· Key financial benefits: Decreased “days sales outstanding,” increased liquidity ratios, enhanced ROE.
For more information, contact Donald Charbonnet at charbconsulting@aol.com.
