The true sale of an ETR occurs the moment that Credebt Exchange® transfers payment to the Originator. For example, if the payment transfer is EUR 9,900 on an Outright ETR with a Face Value of EUR 10,000, the moment that Credebt Exchange® transfers the Purchase Price i.e. EUR 9,000 (less processing fees), the sale occurs. TomNext payment is transferred electronically to the Originator’s Bank account once the ETR is traded (i.e. the trade closes). There are five types of ETR:
- Advance ETR
This is a Spot Market fixed price ETR trade where the Originator/Agent offers ‘Payment on Demand’ to its supplier in exchange for an early payment discount (e.g. 2-3.000%). Transfer of the Purchase Payment (less Trade Commission) is made to the supplier and the Originator/Agent owes the Face Value of the invoice paid to Credebt Exchange®
When to use this
Select this type when trading and selling ETR on an ad hoc/infrequent or revolving basis. To view trading activities, you must apply online.
- Outright ETR
This is a Spot Market fixed price ETR trade where the Originator/Agent sets the Discount percentage amount. Transfer of the Purchase Payment (less Trade Commission) is made to the Originator/Agent, ownership of the ETR transfers completely to Credebt Exchange® and there is no Reserve refund. Responsibility for the collection of the ETR remains with the Originator/Agent and if the ETR is paid on or before the Expected Date
When to use this
Select this type when trading and selling ETR on an ad hoc/infrequent basis. To view trading activities, you must apply online.
- Managed ETR
This is a Spot Market variable price, single ETR trade where the Originator/Agent sets the Discount monthly percentage. When Credebt Exchange® makes a payment (less the Reserve and Trade Commission) is made to the Originator/Agent and ownership of the ETR transfers completely to the Exchange. Responsibility for the collection of the ETR remains with the Originator/Agent and if the ETR is paid in less than 180 days, the Originator receives a Reserve refund
When to use this
Select this type when trading on a regular basis. To view trading activities, you must apply online.
- Performance ETR
This is a Spot Market variable price, single ETR trade where the Originator/Agent sets the Discount monthly percentage and the Expected Date. When Credebt Exchange® makes a payment (less the Reserve and Trade Commission) is made to the Originator/Agent and ownership of the ETR transfers completely to the Exchange. Responsibility for the collection of the ETR remains with the Originator/Agent and if the ETR is paid on or before the Expected Date, the Originator receives a Reserve refund. If it is not paid before the Expected Date, the Originator/Agent loses the Reserve and no further payment is due
When to use this
Performance ETR should attract the best bids, but you should only select this type when you are absolutely sure that the ETR will be paid on, or before, the Expected date (remember, if it is paid even one day late, you lose the entire Reserve). apply online.
- Revolving ETR
A Revolving ETR is a Revolving Market variable price, multiple ETR trades where the Originator/Agent sets the Discount Percentage and commits to provide a ‘block’ of Advance, Outright, Managed or Performance ETR with a specific total value, over a fixed period of time. Credebt Exchange® agrees to pay for every ETR at the same Discount rate. Ownership of all the ETR transfers completely to the Exchange. Responsibility for the collection of the ETR remains with the Originator/Agent. With exception of an Outright Sale, payment of the Reserve to the Originator shall be deferred until, and is conditional upon, all the relevant Traded ETR being Settled on or prior to their Maximum Maturity Dates. If such Traded ETR are Settled on or prior to their Maximum Maturity Dates then all Reserves shall be payable by Credebt Exchange® upon each Reserve Payment Date. In the case of an Outright ETR, payment of the Reserve to the Originator shall be deferred until, and is conditional upon, all the relevant Traded ETR being Settled on or prior to their Expected Datse, the Originator receives a Reserve refund. When considering the Advance ETR, this is a loan from Credebt Exchange® to the Originator and must be repaid in full
When to use this
After you are an established Member of the Exchange, the Revolving ETR option will be enabled on your account and provide access to the Revolving Market option that can be used to replace or compliment traditional bank lending/credit facilities. To view the Trade Floor prices, understand trading techniques and strategies and to view trading activities on the Trade Floor, you must apply online.