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Trading on the Exchange is very quick and simple once you understand the basic trading principals. It is important that you understand these very clearly:
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| Choosing your invoice |
As a Originator, you are selling your invoices to raise cash. The institutional Investor will want to buy the best invoices the Exchange has to offer. Invoices from strong debtors (e.g. large/’well known’ organisations, government, etc) will attract a lot of interest and will sell quickly. So, choose wisely |
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| Upload the information |
For the best results, in addition to uploading the actual invoice you want to sell, you should also upload supporting documentation (e.g. supporting contract, Purchase Order [PO] documents, PO number, delivery docket, etc) |
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| Choosing the Sale Type |
Choose the type of sale, i.e. Outright ETR, Managed ETR or Performance ETR. Also you should understand whether you are going to use the Spot Market or Revolving ETR Market |
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| Setting Your Trade Terms |
Set realistic values, remembering that if your terms are too high, Credebt Exchange® will not accept your Offer |
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| Set the duration |
Think carefully about how long you are willing to wait for Investors to meet your Offer. Choosing only ½ a day or 1-day, may not allow enough Investors to bid on your offer. So choose wisely |
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| Open a Trade |
Once you’ve prepared your trade, you open the trade using the ‘Submit’ button to post it onto the ‘Trade Floor’ |
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| Trading |
Institutional Investors that have automated trading, will immediately make trade offers |
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| Offer Sequence |
The best offer will always appear at the top of your screen, e.g. 0.500% will appear above 0.625% Note:- trading on the Exchange uses Basis Points [BPS] to ensure the lowest possible cost of funds when trading |
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| Automatic acceptance |
Once a bid meets your requirements (i.e. your specified Offer), trading automatically closes and results in a Traded Invoice |
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| Manual acceptance |
If no Investor has met your requirements, you have the option to accept the best trade (e.g. perhaps your reserve was 0.500% and the best offer is 0.720%) |
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| Traded Invoice |
Manual acceptance of an offer also results in a Traded Invoice |
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| Trade refusal |
If no Investor makes an offer, or you decide to reject the offers that were made, then the trade is cancelled. You can either re-trade the failed invoice by improving your offer, or you can simply start a new trade with a ‘better’ invoice |
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| Invoice details |
A successfully Traded Invoice must contain the correct bank account number and sort code provided to you when you became a Member of the Exchange |
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| Invoice checking |
The invoice may be checked by a Credebt Exchange® analyst to ensure it is genuine and this may include contacting the debtor, in your name (i.e. acting as an employee of the Originator), to verify invoice details |
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| Payment transfer |
The Investor that bought the Traded Invoice transfers the agreed Payment to Credebt Exchange® |
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| Settlement (applies to Managed or Performance ETR only) |
The Account Bank then transfers the funds, less the Reserve, less transaction fees)to your Bank account with a payment reference beginning with ‘DEBX’ followed by a unique EFCS payment code |
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| Invoice title |
Once the Account Bank records a successful payment to a Originator, ownership of the invoice passes to Credebt Exchange® |
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| Debtor balance |
For Managed/Performance ETR, when the debtor pays the Traded Invoice, the Account Bank pays the Reserve balance to the Originator (if it is due) |
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