Loyola University New Orleans 2007 MBA graduate Paul Ellis is a founding member and currently vice president of The Receivables Exchange (TRE), a wholly-owned subsidiary of The New Orleans Exchange (NOE).
NOE is preparing to launch The Receivables Exchange (www.ReceivablesXchange.com), its initial platform, America’s first online marketplace for real-time trading of commercial receivables. The Receivables Exchange provides a new dimension in working capital management by connecting companies to a nationwide network of lenders who compete in real time to buy and trade receivables. “This is a new model," said Ellis, “It's the evolution of asset-based lending.”
Last month, NOE announced that Fidelity Ventures has made an investment in the company. NOE has also just closed their Series A round of funding for $4.2 million with Prism VentureWorks out of Boston.
The company aims to expand into global markets, so New Orleans’ widely recognized name made it an attractive choice. Using the same technology that runs the New York Stock Exchange’s bond trading, NOE will allow companies to sell their receivables to banks, hedge funds, and other institutions in an online auction format. The technology allows buyers on the Exchange to check credit and trade histories at the stroke of a button and makes it easier and quicker for companies to sell their receivables for cash.
For the last ten months, NOE has been building the business plan, recruiting, and securing venture capital. They are planning for a hard launch in the summer of 2008.