Master Agreement

The Credebt Exchange® Master Agreement is the central, legal instrument that makes exchange trading possible. The Master Agreement is further supported by Credebt Exchange® Documents. The Master Agreement and the Credebt Exchange® Documents enable trade receivables (invoices) to be offered for sale as Exchange Traded Receivables [ETR] using the true sale method that features full legal assignment from the Originator to the Investor (i.e. the Investor’s risk is absolutely to the Debtor). Every Member must first register and then complete the application process before signing the Master Agreement. The Master Agreement must be signed by every Member of the Exchange, prior to trading.

Master Agreement Concept

Originator risk removed, Investor risk to Debtor

Master Agreement Affect

On Originators

After the Originator’s Registration and Application have been approved and authorised, the Originator:

Tail Image Submits the Offer for the Outright ETR on the Exchange
Tail Image Has Intelligent Finance without liens/guarantees
Tail Image Can trade as frequently, or as rarely, as required
Tail Image Receives the Purchase Payment on a TomNext basis
On Investors

After the Investor’s Registration and Application have been approved and authorised, this means that:

Tail Image All Traded ETR belong absolutely to the Investor
Tail Image All credit risk is to the Debtor, not the Originator
Tail Image Investors can create a new investment strategy
Tail Image There’s a completely new market with risk/yield rewards

What is an Originator?

What is an Investor?