eRevWorks^SM Overview

Tired of watching money walk out the door as you turn away potential customers because you don't have a product they need?

Your bank or financial institution may not currently be offering your customers a working capital financing solution such as asset-based lending (ABL) or transaction-based financing (TBF)because of the difficulty and expertise required to manage the receivables base. If that is the case, you are leaving money and good bank clients on the table.

eRevWorks provides banks and other funding sources with full back-office, comprehensive outsourcing of Working Capital Financing Solutions.

Since cash is the life blood of business, a bank that offers a working capital solution to eliminate a business' cash flow gap will naturally be the bank of choice.

The challenge for most business owners occurs when a cash flow gap is created as follows:

• The raw materials are purchased by a manufacturer on 30 day terms.
• It takes the manufacturer 20 days to manufacture the finished goods.
• The items are sold on 30-day terms.

This familiar scenario shows that the supplier will need to be paid for the raw materials before cash is actually received from the sale of the finished goods. In our simple illustration, a 20-day cash flow gap is created from the time the raw materials need to be paid for and the time cash is actually received by the business. The business owner is then faced with covering this cash flow gap. In a perfect world, this cash flow gap would never be a problem because everyone would pay exactly on time and terms would always match. In the real world, however, this cash flow gap is a reality, and the bank is the most likely entity to solve this cash flow problem.

Working capital lending is designed to eliminate the cash flow gap.

But I can't provide a working capital financing solution to my customers because the collateral is invisible — thus, this type of financing is unsafe.

Batching is when a group of invoices are compiled together to become one unit of collateral. A dollar value is then assigned to this collateral unit.

In the working capital finance world, taking a batch of accounts receivable or an A/R aging as collateral is like grabbing an entire subdivision of homes without having any idea of the specific nature of each of the homes within that subdivision. To make a working capital loan without validating the collateral behind it would be like making a commercial real estate loan without verifying the existence of the building.

The reason most lenders are uncomfortable making working capital loans is because they are administratively prohibited from going to the same level of detail they would with a real estate or equipment based loan. Lenders know that without verification and validation, no loan can ever be considered safe. This is the precise reason most lenders feel that account receivable collateral is invisible.


eRevWorks does not process on a batch basis. eRevWorks processes on the system where each receivable is specifically identified and defined as to its complete validity, quantity, amount, credit terms, and of course the credit quality of the entity responsible for payment of the receivable. As each characteristic of the receivable is defined, much like the real property, the invisible nature of the collateral is eliminated.

Have working capital financing solutions such as Asset-Based Lending and Transaction-Based Financing looked attractive but seemed impossible due to lack of time, lack of knowledge, and lack of technology?

Outsourcing to eRevWorks enables banks to offer working capital solutions to their clients without having to purchase expensive software, hire working capital experts, and set up an administrative back office processing center to analyze customer credits, do collections, validate receivables, verify receivables, notify customers of address re-direction, post payments, etc.