Become a Platform Black Buyer
and gain attractive returns
Buyers view information about each auction:
- The Seller of the invoice, plus their credit score and report, provided by Experian
- The invoice and supporting documents such as purchase order, delivery note, and the Debtor plus their credit score and report, as provided by Experian
- The current winning bid
Buyers can view all auctions, or set up their profile to be alerted when particular sectors, Sellers, Debtors, or invoice sizes are put up for auction.
Platform Black is an easy to use, online auction platform for purchasing invoice receivables at a discount.
How does the process work?
Investor wants to make attractive short term returns, and registers as a Buyer with Platform Black.
Buyer views auctions and segments them into books so they are easy to monitor and bid on. Each book can be segmented in any way the Buyer chooses e.g. by credit score of Debtors, or by specific Seller etc., and can hold multiple auctions.
Buyer is alerted to auctions that fit his/her risk model. Invoices of all sizes are available for purchase, from £5,000 to £100,000+.
Buyer places their bid manually or can set the lowest amount they are prepared to receive for provision of the finance, and the system will automatically advance the bid based on this criterion.
As soon as the auction closes, the Buyer transfers the advance amount to Platform Black (minus the winning discount fee), which is then passed on to the Seller.
On the repurchase date the Seller pays the full value of the advance back to the Buyer. The Buyer benefits from a fast, flexible origination of higher rate returns.
Register to become a member buyer
Benefits
Originate higher rate returns
- Access to an exciting new investment tool for generating attractive returns on short term debt
- Low cost of origination, improving the margin on your lending
- Access to credit scores on Sellers and Debtors, plus contextual information on invoices, allowing you to swiftly evaluate debt
- Fixed credit periods, so you know exactly how much your return will be on each 30 day term
Case Studies
Annualised return of 30%
Day One
A Seller put an invoice to a blue chip Debtor up for auction, requesting 75% of the invoice amount to be advanced for a maximum 60 day period. The Seller set the reserve at a 3% discount fee on the advance – this was what he was prepared to pay for his working capital.
Day Two
The first bid was made by a HNW Buyer, matching the reserve discount fee set by the Seller, which meant the Seller had got the deal he wanted, and subsequent bids would only improve on his terms.
Day Three
An institutional Buyer submitted a better (lower) discount fee bid. The HNW counter-bid later in the day. Bidding continued over the course of the auction, and in total seven bids were made between the two Buyers, with the institutional bidder winning with the lowest bid of 2.5%, when the auction closed.
Day Four
Funds were received by Platform Black, minus the discount fee, from the winning bidder.
Day Five
Platform Black transferred the funds to the Seller, which meant that they had the working capital they needed to fund their business’ cashflow needs.
Day Sixty
The Buyer secured a return of 2.5% per 30 day period, so 5% for 60 days in this case, delivering an annualised return of 30%.
Partners
Some of the companies who back us
