A New Way to Tap Funds You're Owed for Cash An unconventional platform delivers an auction-based way to cash in on funds owed to your company.

In a distressed capital market, every asset can be a path to alternative financing--even your company's receivables. That's the notion behind The Receivables Exchange: The New Orleans firm allows companies with at least $2 million in revenue to offer their accounts receivable for sale in an auction format to prospective buyers.

Here's how it works: Sellers and buyers apply and pay a $500 onetime registration fee. Once approved, sellers can offer individual or bundled invoices for sale in an auction format, setting the price they wish for the receivables. Buyers can bid on invoices, usually paying .5 percent to 3.5 percent less than the face value of the receivables. Buyers can purchase part or all of an auction, which can consist of several invoices.

A typical auction is set for three days, but most close within 24 hours because the seller's terms have been met. At press time, the average auction totaled $52,000, with an average of six invoices per bundle.