Master Agreement

The Credebt Exchange® Master Agreement is the central, legal instrument that makes exchange trading possible. The Master Agreement is further supported by Credebt Exchange® Documents. The Master Agreement and the Credebt Exchange® Documents enable trade receivables (invoices) to be offered for sale as Exchange Traded Receivables [ETR] using the true sale method that features full legal assignment from the Originator to the Investor (i.e. the Investor’s risk is absolutely to the ebtor). Every Member must first register and then complete the application process before signing the Master Agreement. The Master Agreement must be signed by every Member of the Exchange, prior to trading.

Master Agreement Concept

Originator risk removed, Investor risk to debtor

Master Agreement Affect

On Originators

After the Originator’s Registration and Application have been approved and authorised, the Originator:

  • Submits the Offer for the Outright ETR on the Exchange
  • Has Intelligent Finance without liens/guarantees
  • Can trade as frequently, or as rarely, as required
  • Receives the Purchase Payment on a TomNext basis

Originator Registration

What is an Originator?

On Investors

After the Investor’s Registration and Application have been approved and authorised, this means that:

  • All Traded ETR belong absolutely to the Investor
  • All credit risk is to the debtor, not the Originator
  • As a market maker, Credebt Exchange® assumes the risk of holding ETR on behalf of the Investors
  • Investors can create a new investment strategy
  • There’s a completely new investment product with risk/yieldt with risk/yield rewards

Investor Registration

What is an Investor?