Cash a little hard to come by? That's not surprising, with your customers holding on to payments longer and longer. And with banks reluctant to lend, borrowing rates are getting expensive, too. There is an alternative, you know. And it's available when you start thinking differently about the value tied up in your accounts receivables.
You can unleash that value, quickly and affordably, with Ariba Receivables Financing powered by TRE.
It's simple and easy. Working through the Ariba Network, you can engage with a global network of capital providers that will bid on your receivables through competitive auctions. You retain complete control over your cost of capital and cash flow. Ariba's partnership with The Receivables Exchange (TRE) paves the way, providing key advantages in terms of speed and rates. Normally, payment terms on your accounts receivable can hold up cash for 45 to180 days, or more. With Ariba Receivables Financing, you can turn those receivables into cash in as few as two days.
So get ready. Soon you'll be able to unlock cash to ramp up production, fund a capital investment, or get that new idea off the ground. And breathe a little easier in the process.
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How this works.
Choose the invoices to auction, totaling at least $10,000. Set the parameters – auction duration, minimum advance amount, and maximum fee you'll pay. Through the Ariba Network, your invoices are posted directly from your ERP or accounting system to the TRE platform. There they can be entered into an auction that you can observe in real-time. The capital provider that submits the best bid within your parameters wins. Your advance is wired to you within one business day of the auction. When your customer pays on their due date, TRE remits to the capital provider the amount you were advanced, plus the amount of the discount fee. You get paid the remaining balance.
Why this is better than factoring.
With TRE, there are no requirements for personal guarantees or all-asset liens on your balance sheet. No one notifies your customers of the transaction; all communications flow through you. You can post as few or as many receivables as you like, as long as you meet the $10,000 auction minimum. You can have as many auctions occurring simultaneously as you want. You specify minimum advance and maximum fee parameters, and are only obligated to accept bids that meet or improve on them. And there are no hold ups: you get your advance the next business day after the auction closes.
The advantages of working through Ariba.
Ariba's Cash Optimizer dashboard gives you a single point of integration between the Ariba Network and TRE. Within the system is a growing network of third-party capital providers that trust the Ariba brand and are ready to competitively bid on your receivables. Because your invoices flow through the Ariba Network – the world's largest business commerce network – they are considered valid, low-risk documents. This can mean faster processing and more advantageous discount rates. What's more, the Ariba Network is part of the Ariba Commerce Cloud, where you'll find an online community of peers and thought leaders with whom you can collaborate and share best-practice tips.
Eligibility requirements.
To be eligible for membership in TRE, your business must generate a minimum of $1,500,000 in annual sales; have at least two years of operational history; and be registered to do business in the U.S.
How to get started.
All it takes is an easy, no-commitment application. Click here to access the application form. A representative will contact you to answer questions and help you complete the process.
By participating in the world's first electronic marketplace for receivables financing, you can quickly tap the liquidity locked in your accounts receivable while retaining complete control. With unprecedented flexibility over their sale, you can grow your business when and how you see fit. But that's not all you'll find in the Ariba Commerce Cloud. At your fingertips is a comprehensive set of market-leading solutions to help you with every aspect of B2B commerce, whether you need additional help with collaborative finance management, sales acceleration, or spend management.
Read a white paper about The Receivables Exchange, or frequently asked questions.
Request more information about Ariba Receivables Financing or other working capital management solutions.
Complete the following form below and an Exchange Associate will contact you to answer questions and explain the application process1.
To be eligible for Membership, your business must meet the following criteria:
- A minimum of $1,500,000 in annual sales
- At least two years of operational history
- Registered to do business in the U.S.
1You expressly agree and understand that your data entered into this system may be transferred to Ariba, Inc. and the Ariba hosted computer systems (which are located primarily in the U.S.), in accordance with the Ariba Privacy Policy and applicable law. In addition, you authorize Ariba to transfer your information to The Receivables Exchange company.
