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Case Studies

 Contact:

  STC Associates
  Kristen Massaro
  212-725-1900 ext. 204
  [email protected]m
FOR IMMEDIATE RELEASE

 

Arbinet Member Expands its Working Capital with RapidClearSM

A selling Member has found an innovative way to expand its working capital using Arbinet’s RapidClearSM accelerated settlement service. This has enabled the Member to sell more traffic and scale its business.

Business Requirement

This selling Member has a credit line with a regional operator it uses as its main supplier. Selling to satisfy the demand in Arbinet’s market alone would exhaust this credit in about ten days. Traditionally this Member did not have an alternative solution.

Member’s Results with RapidClear

The seller discussed its situation with its Arbinet Account Development Specialist and learned that Arbinet offers the RapidClear solution to provide accelerated settlement to sellers. This seller opted for the “7 net 2” terms so Arbinet wires payment two days after each 7-day trading period. The seller is now able to pay its supplier each 9 days and reset its credit line. This has allowed the seller to grow its traffic volume, revenue and margin.

RapidClear, backed by Arbinet’s 5-part credit management program with the CreditWatch monitoring system, provides Members with a streamlined, secure and efficient marketplace for voice minute transactions. RapidClear is one of a series of solutions that makes Arbinet a powerful financial partner to its Member carriers.

RapidClear Benefits Summary

With RapidClear, Members collect payment much sooner than the industry-average 45 days sales outstanding (DSO), shrinking working capital requirements and freeing cash to grow their businesses. RapidClear enables carriers to improve financial liquidity with:

  • Centralized minutes clearing
  • Secured receivables collection
  • Two fast payment options:
    • 7-day billing cycle with 2-day payment
    • 15-day billing cycle with 2-day payment
  • No monthly revenue minimum
  • Fast electronic payment

120 Albany St. Tower II, Suite 450, New Brunswick, NJ 08901
phone: 732-509-9100, fax: 732-509-9101, website: www.arbinet.com

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