BidPay, Inc. (” BidPay®”), a New Mexico-based supply-chain finance technology start-up announced today it has begun alpha testing live data in its reverse-factoring payable auction platform. BidPay®, a trade-payable auction management firm, is part of the Interstate Capital Group of Companies. BidPay® markets a proprietary, cloud-based SAAS portal that delivers spot liquidity to credit-constrained suppliers of the world’s leading companies.
BidPay® CEO, and inventor of the BidPay® technology, Tony Furman, has over 30 years of experience in the banking and supply-chain finance industries. Furman is co-founder and President of Interstate Capital Corporation, one of North America’s leading independent accounts receivable factoring firms, discounting nearly $1 billion of receivables annually for companies throughout North America. BidPay® is a subsidiary of Interstate Capital.
BidPay® clients are companies that have access to credit and capital markets and annual revenues in the $1 billion to $5 billion range (“buyers”). Suppliers of BidPay® ‘s clients may bid on the right to obtain prompt payment on qualified receivables directly from the buyer, and obtain spot liquidity without the need for external financing.
“BidPay® is attempting to capture receivable discounting opportunities for a large segment of suppliers all over the world that are unable to obtain financing from external funding sources”, explains Furman. Many suppliers, domestic and foreign, are unable to borrow against or factor their receivables or are otherwise cash or credit-constrained. BidPay® is hoping to fill the financing void for those companies by electronically gathering supplier discount offers for its clients in an online auction platform and managing payable auctions.
BidPay® clients earn above-market, risk-free returns on their own funds employed in the early retirement of trade payables. At the same time, credit-constrained suppliers enjoy a new, flexible, and cost-effective source of spot liquidity that reduces supplier dependency on restrictive, costly, and often unavailable external sources of financing. BidPay®‘s has U.S. and international patents pending.
Furman estimates that worldwide demand for payable auctioning is so vast, BidPay® will be unable to capture all of the demand. “BidPay® will either license its platform or enter into franchise agreements with third parties to market the technology when and if demand outstrips our ability keep pace”, Furman commented. He adds, “We are evaluating strategic options to maximize the value of our IP, business model, and experience”. The BidPay® payable auction portal will be publicly visible when the company transitions to beta testing late in 2014. Parties interested in viewing a live demo or inquiring about future licensing and franchising opportunities should contact Ernest Eisenberg, BidPay®‘s President and Chief Operating Officer, at eeisenberg@.