The alliance may have a significant impact on the future of Receivables as it includes the potential exposure of their working capital solution to more than 100,000 businesses supported by Insperity. Insperity also made an undisclosed capital investment in the firm as part of the agreement.
The Receivables Exchange is most simply described as a marketplace or live auction where institutional investors can purchase “accounts receivable” listed available for sale by individual businesses. Insperity’s business is not quite as clear. According to their website, Insperity is, “a trusted advisor to America’s best businesses for more than 25 years, providing an array of human resources and business solutions designed to help improve business performance.”
Formerly known as Administaff, Insperity is provides a broad list of human resources services to their clients including workflow optimization, performance management, expense management, organizational planning, and technology services.
“Access to capital is the lifeblood of any business, and we are pleased to be able to offer The Receivables Exchange’s innovative financial solution to our clients and other small and medium-sized businesses,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “This joint venture complements our comprehensive array of human resources and business performance solutions designed to help companies run better, grow faster and make more money.”
“This joint strategic initiative with Insperity enables us to help even more businesses access the capital they need,” said The Receivables Exchange’s Co-Founders Justin Brownhill, chief executive officer, and Nic Perkin, president. “Insperity and The Receivables Exchange are both committed to providing innovative solutions to enhance business performance, so it is a natural fit. Together we can help businesses take control of their working capital and achieve their growth objectives.”