Selling invoices is the new way of raising capital for businesses.

The Edebex marketplace is there to serve all businesses. By selling customer invoices to investors, it streamlines their cash flow without having any impact on the debtors.

The Edebex principle:

Edebex enables businesses to sell their accounts receivable, their customer invoices, to investors. The investors wait for the receivable to fall due before receiving payment from the debtor – you –, just as the company issuing the receivable would have done.

Edebex uses a very old legal principle, that of debt assignment, in combination with the modern technique of an online market platform.

The debt assignment process consists of selling an invoice to a third party business, which then becomes the new owner of this invoice. The legal basis for this assignment is governed by the Civil Code, article 1690 et seq.

Before launching this innovative financing system, Edebex proactively underwent an examination by FSMA, the Belgian Financial Services and Markets Authority, with a positive outcome.

For debtors, the system has no impact. Instead of paying the company issuing the invoice, they pay the investors. The invoice amount is the same, as is the due date. This is neither recovery, nor factoring nor invoice discounting! Use of the technique of selling credit invoices is not a sign that your creditor distrusts you.

The benefits of Edebex

For the company selling the invoice – your trading partner – the purchase of the invoice is an opportunity to enhance its cash flow management.

Your trading partner therefore gains in financial strength and can offer you better products and services.

There are many benefits for you:

  • The invoice purchase costs you nothing.
  • The risk of fraud is nil.
  • The bond of trust with your supplier is strengthened.
  • Your supplier’s viability is enhanced.
  • The payment term of your invoices can be renegotiated.
  • How Edebex works

How does it work?

The Edebex platform is a closed platform. Each user (buyer or seller) undergoes an audit before becoming a member.

Each invoice is audited before being put on the online marketplace. Making contact with the debtor forms part of the audit. In the case of new debtors, they are first contacted by telephone and given an explanation of how Edebex and the payment process works for them. An email is sent asking four questions about the proposed receivable:

  • Is the invoice genuine?
  • Is the due date correct?
  • Is the invoice amount correct?
  • Is there any intention of disputing the invoice?

If the audit results are positive, the invoice is approved for sale on the marketplace. On average, an invoice is sold within four hours.

When the invoice is sold, Edebex notifies the debtor by registered letter and email. As a user of the platform, the buyer has accepted Edebex’s general terms and conditions. These general terms and conditions authorise Edebex to notify assignment of the receivable on behalf of the buyer to the debtor.

On receipt of the notification, the debtor is then legally bound to pay the invoice in question to the new owner, i.e. the buyer.

Edebex is for you, too

Edebex is there for all companies regardless of size, age or financial standing. If you want to streamline your cash flow, don’t wait: opt for Edebex!

Supply Chain Finance