Peer to peer Invoice trading is the process where businesses (usually SMEs) auction their outstanding invoices via a centralised online platform to obtain immediate cash to boost its working capital. Otherwise the business will have to wait typically 30 to 120 days to receive funds when the invoices are settled.
A peer to peer (P2P) Invoice Trading platform provides an online solution / service that brings together SMEs who need working capital to savvy investors who want to deploy their funds for an attractive return. The platform charges a fee from both the SMEs and the investors for the service provided.
In an auction, SMEs can post a single or multiple invoices against one or multiple debtors (depending on the platform features).
SMEs can set the auction minimum “pricing” or parameters
Investors will bid for the invoices in a live Auction. Investors do not need to bid for the whole invoice but can bid any percentage of the invoice. Those who offer the best competitive pricing (advance rate and discount rate) their bids will be successful. Peer to peer invoice trading platform will facilitate the cash transaction, advancing investors’ cash to SMEs and when the invoice is finally settled by the debtor reimburse the investor the advance they had paid plus interests they have earned.
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InvoiceInterchange provides an alternative finance to local SMEs from the traditional lenders through its unique invoice trading platform..
InvoiceInterchange allows SMEs to regain control of their cash flow from their debtors:
InvoiceInterchange provides fast, flexible and competitive pricing to support local businesses. This frees SMEs from worrying about their working capital and thus able to focus on building a successful business.
If you are interested to know more information about peer to peer Invoice Trading or if your organisation is interested to convert outstanding invoices into immediate cash, contact us.
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