Edebex, an online exchange platform that enables SMEs to sell their commercial receivables in under 72 hours, while offering investors a high return and capital guarantee, has launched in Luxembourg.
The company, which launched in 2013, has seen more than 600 companies in Belgium and France sign up to help restore their capital by selling their invoices online. So far, Edebex says that more than €100 million worth of invoices have already been sold.
“On the one hand, we enable SMEs with cash flow problems to sell their customer invoices online so that they can receive the funds they need immediately, without having to wait for their invoices to become due. On the other, we offer companies with surplus liquidity the opportunity to purchase these invoices and thereby make a very low-risk investment that delivers a return that is much higher than anything else on the market,” said Xavier Corman, co-founder and CEO of Edebex.
This alternative to the reportedly difficult system of factoring is creating a real change in people’s mindsets said the company, while allowing them to easily access funds in times of need.
“That said, in many cases the situation is even more desperate” said David Van der Looven, co-founder and CFO of Edebex. “We have come to see that 80% of our customers don’t have (or no longer have) access to conventional financial solutions, while their banks are turning them away because the businesses themselves have poor financial ratings and are struggling. This is where the real strength of our offering lies. We even help companies recover from administration or bankruptcy.”
