When it comes to credit control and working capital, time is critical. More often than not, days and weeks are allowed to pass without actions being taken to get results. As you’ll see in the other articles in this Smart Cash Flow Programme, there are very simple ways to use time more effectively and reduce… Continue reading The Importance of Time
Tag: installment loans
Calculate Working Capital
If a company takes all of its short-term assets (e.g. cash in the bank, receivables invoices, stock, etc) and pays all its short-term liabilities (e.g. suppliers, staff, etc) the remaining balance is their working capital position. If the working capital position is positive, it is more than likely that the company is adequately capitalised and is self sufficient. If… Continue reading Calculate Working Capital
Institutional Roadshow III Begins
Today Credebt Exchange® completed its initial Institutional Investor Roadshow in London. From an initial panel of six UK banks, presentations were made to three. The primary focus of the presentation was on risk and controls. Initial reaction was positive with offers from two of the three banks expected before…
Weighted Average DSO [WADSO]
As explained in the Day Sales Outstanding [DSO] article, there are only two technical terms we refer to in the programme DSO (pronounced D-S-O or D-SO) and WADSO (pronounced WAD-SO). Once you’ve read and understand how DSO is calculated, WADSO is the tool that measures performance i.e. how effective your cash collections are. WADSO is short for Weighted Average Day… Continue reading Weighted Average DSO [WADSO]
Day Sales Outstanding [DSO]
There are only and two technical terms we refer to in the programme DSO (pronounced D-S-O or D-SO) and WADSO (pronounced WAD-SO). Don’t get distracted with all the other cash/credit control jargon like Collection Effectiveness Index, Transaction Turnover per Cash Applicator, etc. They’re too complicated and aren’t used in this programme. This programme is focused on real results that are… Continue reading Day Sales Outstanding [DSO]
Low Cost Capital
Exchange Overview Credebt Exchange® provides an unrivalled and unique form of Low Cost Capital specifically for organisations in the micro-medium business sector. The Exchange model is substantially different from any other type of traditional working capital/lending model. A summary of the principal differences is highlighted below: Selling model, as opposed to a lending model No… Continue reading Low Cost Capital
The Smart Cash Flow Programme
From 25 years of owning and operating small companies (and some large ones too), one of the hidden costs of doing business has always been our bank charges, fees and, of course: the lending/borrowing interest rate charges. These can be prohibitively expensive so we devised a simple smart cash flow programme to ensure we kept bank fees,… Continue reading The Smart Cash Flow Programme
2013-Q4 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 Q4, Credebt Exchange® held RPA of €4.3m, with €2.7m allocated during the quarter. The full spectrum of available ETR was utilised and all currency exposure was… Continue reading 2013-Q4 ETR Briefing
How to use risk to your advantage
As explained in the previous article “It’s all about Risk…” you’ll now understand that larger organisations get preferential treatment from banks. That’s the status quo and isn’t likely to change any time soon. So what can you do to improve the banks perception of your business, so that you achieve ‘next best’ status? The answer… Continue reading How to use risk to your advantage
It’s all about Risk
Once you understand risk, then you’ll begin to understand banks and how banking works. Banks, investors, shareholders, managers, financial markets, brokers and other investment/lending professionals all learn about risk. That’s not to say they necessarily understand risk in all its guises, but they must understand the principal that high risk is bad risk. Think of it like parenting.… Continue reading It’s all about Risk
It's all about Risk
Once you understand risk, then you’ll begin to understand banks and how banking works. Banks, investors, shareholders, managers, financial markets, brokers and other investment/lending professionals all learn about risk. That’s not to say they necessarily understand risk in all its guises, but they must understand the principal that high risk is bad risk. Think of it like parenting.… Continue reading It's all about Risk
Welcome to Credebt Exchange Blog
Credebt Exchange® enables service and goods providers to offer their invoices as Exchange Traded Receivables [ETR] for sale on the Exchange. These ETR are attractive to Investors and when purchased on the Exchange, this provides Alternative Working Capital to the Originator/seller. A key objective for Credebt Exchange® is to achieve rates that are comparable to,… Continue reading Welcome to Credebt Exchange Blog
50+ Retail Investors
Today the Exchange received funds from it’s fiftieth Retail Investor. Since the first date of trading on 4 July of his Year (see article: First RSA/RPA Trade Executed), achieving 50 Retail Investors demonstrates a strong appetite amongst the investment community for strong, short term cash-equivalents such as ETR….
2013-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 RPA of €3.2m, with €1.7m contributed during the quarter. The full spectrum of available ETR was utilised and all currency exposure was… Continue reading 2013-Q3 ETR Briefing
Unaffected by Seasonality
The Summer months tend to be the slowest for most Originators (and indeed Investors), however, August continues the steady growth experienced in Q2. The performance demonstrates that the initial Members of …
First RSA/RPA Trade Executed
Volume trading in Exchange Traded Receivables [ETR], has been strong using Revolving Sales Agreement [RSA] block and buy-out trades to increase market penetration. Little, or no, initial resistance in the market. Deals are delivering on Investor Revolving Purchase Agreement [RPA] …
Investor Demand
After only six weeks, Investor demand for Exchange Traded Receivables [ETR], is ahead of expectations and indications are that demand will continue into Q3 at a steady pace. This strong positive performance indicates that ETR placement and yield…
ETR OnRisk with AIG
Exchange Traded Receivables [ETR], officially went ‘OnRisk’ with AIG as finance trade, commercial risks attaching on an insurance contract with specific reference to the Master Agreement …
Investor Road Show II
The second Investor & Intermediary road show concludes with a further 10 Intermediaries being appointed as agents for Credebt Exchange®. This brings the total number of…
Exchange Opens for Business
The first two Investors both confirmed their initial investments in ETR today. Both are deposit investments and the Buy rate commences on 25th February for an initial…….
Intermediary Growth
As the New Year starts the number of Intermediaries has grown substantially now that ETR have both capital and yield protection. The ETR Repurchase forms a central part of the Credebt Exchange®……
ETR Overview
Credebt Exchange® was founded in 2011, specifi cally to address two important issues in the economy: 1. liquidity in the micro-medium business sector; and 2. providing a strong, stable, cash equivalent alternative to bank deposits for Investors. Trading commenced in July, 2013 and Credebt Exchange® continues to deliver on its commitments to both businesses and Investors.… Continue reading ETR Overview
Credit Insurance
Official credit insurance negotiations commenced on an exclusive basis with AIG today. Subject to the outcome of these negotiations ETR will be credit enhanced…
€ 5.0m Equity
Despite the ‘Frankenstorm’ followed by severe snow storms, this late evening telephone call from New York, confirmed the equity valuation of €5.0M. Subject to due diligence, the Exchange …
Investor Road Show I
Today saw the completion of the initial Investor ‘mini road show’ and began with the first signed Investment Intermediary Agreement. This confirmation underpins the…
Master Agreement Drafted
After nine months of careful consideration, the first draft of the Master Agreement is finalised and ready for use by all Members of the Exchange. Its importance is central to the Exchange’s efficient and legal…
Investor Initiative Begins
Selection and marketing to the initial ‘Investor pool’ commenced today and is expected to continue throughout September into late October…
Strategic Partner Selection
Initial marketing to specific strategic partners commenced today ahead of the planned Investor initiative for September as the Exchange prepares to formally enter the market…
Automated Clearing
With the assistance of IBM® and the co-operation of Danske Bank, the decision to automate trade clearing has been agreed. The decision is based on the need for efficiency and security in the…
Debtor Marketing
Although Debtors are third-parties to trading on Credebt Exchange®, their co-operation, input and support is important to the ongoing success of the Exchange. Initial reactions are positive…
Volumes Exceed € 100.0m
Based on the results of initial marketing and in less than 20 days, € 100m of Exchange Traded Receivables [ETR], is available from the initial short list of Originators. Much in line with expectations, marketing will move to…
Originators Initiative Begins
Today, contacting Originators across all market segments and industry sectors commenced. The primary objectives are to establish detailed and specific market information on the supply of ETR and…
Quistclose Segregated Accounts
With the assistance of the Central Bank and Arthur Cox, Danske Bank formally agreed to operate quistclose segregated accounts services for Credebt Exchange® . This protects Exchange Members…
Arthur Cox Appointed
After many months of careful selection, Arthur Cox has been selected as legal advisors to Credebt Exchange®. As one of Ireland’s leading law firms…
Strategy Agreed
The three strand market strategy was finalised today by the interim executive committee. Resulting from this, several strategic appointments were agreed…
Danske Bank appointed
Today, the decision was taken to appoint Danske Bank as bankers to Credebt Exchange® Limited …
Deloitte appointed
Today, Deloitte were appointed to provide audit, financial advice, risk management, tax services and trading system validation services to Credebt Exchange® Limited …
First System Release
The first Credebt Exchange® test system was delivered today with testing to commence early in July. Security will be protected using Digi-Access™ two factor …
System Architecture
The overall architecture of Credebt Exchange® is finalised ready for production and line programming. The system’s language, structure, design, flow and detailed specifications are all completed…
Development Commences
Continuing its research in parallel, the development of Credebt Exchange® begins with the emphasis on using an ECN with high-speed transactions, ease of use and military-grade security…
Research Commences
Credebt Exchange® market research begins by focusing on investment vehicles and strategies used by larger corporations using ECN and OTC fixed income markets…
Solving the Credit Issue
The founders of Credebt Exchange® commit to solving the issue using their business experience, their knowledge of the financial markets…
Credit Crisis Deepens
Founders of Credebt Exchange® continue to monitor the availability of credit, specifically as it relates to the Small & Medium Enterprise [SME] sector. The debt situation worsens