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Receivables Exchange closes USD17m financing from Bain Capital

The Receivables Exchange, an online marketplace for real-time trading of accounts receivable, has closed USD17m in series C financing led by Bain Capital Ventures, with additional commitments from existing investors Redpoint Ventures and Prism Ventureworks.

The Receivables Exchange pioneered the online receivables financing marketplace in 2008 with the launch of its proprietary receivables trading platform.

The receivables finance industry represents a USD18trn marketplace.

Most companies have more than 60 per cent of their working capital tied up in accounts receivable, limiting their ability to fund the growth of their businesses and contribute to the growth of the US economy. On The Receivables Exchange, businesses are able to sell their accounts receivable at competitive terms to a global network of accredited institutional investors that compete in real time to purchase them.

Bain Capital Ventures is the venture capital affiliate of private investment firm Bain Capital.

The Receivables Exchange will use the funding to further scale its operations and sales activities and to expand its marketing, business development and corporate partnership efforts.

“Cash flow is one of the biggest considerations for most companies – and one of the greatest barriers to improving operating and financial performance,” says Jeffrey Schwartz (pictured), managing director of Bain Capital Ventures. “The Receivables Exchange is a game-changing innovation that we believe, based on our experience with hundreds of portfolio companies, can revolutionize the way businesses manage their cash flow and fund their day-to-day operations. The model has been proven and The Receivables Exchange is extremely well positioned to continue its growth and to integrate with other leading business finance applications.”

“We were fortunate to have significant interest from numerous well-respected, high-profile venture investment firms,” adds Justin Brownhill, co-founder and chief executive officer of The Receivables Exchange. “Bain Capital Ventures immediately stood out because of their track record of establishing long-term market leaders, particularly in the capital markets arena. And, their reputation of serving as a fully committed strategic collaborator is precisely the type of premier partner that we were seeking as we continue to scale and enhance the model. We are thrilled to have such a remarkable firm on our team.”

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