CREDITPLACE was established in 2013 to lead the ongoing revolution of EOM Net 0 (current plus zero). By connecting businesses and investors in Israel, we reduce the number of credit days and create an attractive investment option for private investors. For more information about the company owners read our About Us page.
nstead of financing your customers for months and waiting for payment, you can receive cash immediately, so that the time lapse between paying suppliers and receiving payment from customers is shortened, and the problem of cash flow is solved. This significant cut in credit days allows you to invest your resources in the company’s growth and development.
Customers’ debt sale decreases the receivables article and increases cash in the balance sheet, so that the assets of the company grow and obligations decrease, thereby improving performance in the overall balance sheet.
Yes! CREDITPLACE will approve a relevant credit line to each client, making it possible to reduce the days of credit within the agreed framework.
Within 48 hours of uploading the invoice into our system, CREDITPLACE investors will buy a future receipt to be paid within 30-120 days from you, and will provide you 70% -90% of the proceeds.
No. We provide a credit line equivalent to the bank’s that is not part of any debt to the bank.
No. There is no need to pledge anything for the benefit of CREDITPLACE, but you need to issue an Assignment of Customer Debt and sell your ownership.
Assignment of debt means sale of the debt. It provides you flexibility and does not affect your balance. For example, a delay of even one day in customer’s payment will not negatively affect your business as much as a one day delay in a loan payment, which could potentially jeopardize your enterprise.
You must notify your customers once, at the beginning of the activity, that you assign your debt rights to the benefit of CREDITPLACE investors. From that point on, a standard document indicating that the receipt was assigned to CREDITPLACE and that customers shall pay their dues directly to CREDITPLACE will be attached to every invoice.
Acquisition debt includes this inherent risk. As long as there is no commercial dispute between you and your customers, CREDITPLACE investors bear this risk.
CREDITPLACE investors buy debt of large, stable companies, which pay under long-term credit conditions that hamper your cash flow.
Private investors from the public who wish to receive an attractive return on their money and help businesses reduce the number of credit days and improve cash flow.
Yes. Investing in CREDITPLACE is open to the general public, including business owners. For more information about becoming an investor with CREDITPLACE, read our Investor page.
Definitely not! Business details are kept confidential from the investor and secured in CREDITPLACE system. The transaction is shown in the trading platform with references to the paying body without ever mentioning the business name.
Selling costs are comprised of two factors: the CREDITPLACE fee which is a one-time invoice fee, and interests calculated for the days of actual financing paid to investors.
Selling costs are determined by the quality of customers, their financial stability, and time to maturity of the invoice. The longer the repayment time, the higher the interest rate.
The registration process only takes a few minutes and is free. After you register, a CREDITPLACE representative will examine your request to join and within seven business days, you can start selling invoices easily, quickly, and efficiently.
· Companies looking to diversify and increase their sources of funding and reduce the number of credit days.
· Companies selling to high-quality and stable customers regularly.
· Companies with an annual turnover of more than NIS 3M.
· Companies with over two years of activity.
· Stable companies that have not experienced negative events and have a clean background at business data providers.
Funding is provided after a professional and fast underwriting process.
1. Register in the CREDITPLACE system. (CONTACT US)
2. Within 24 hours, a CreditPlace representative will contact you to arrange a meeting.
3. Transfer of financial documents about the company and underwriting.
4. Within seven days, receipt of credit line approval and initiate activities.
We guarantee a quick and efficient process within a defined schedule at each step.
Receipts Acquisition (factoring) is a centuries-old financing method in which the investor acquires business receivables from one or more customers of the same business. The receivable is typically an invoice issued to the business’ customer, usually accompanied by another document such as a delivery note indicating that the invoice is for goods or services supplied. Upon purchase of the receivable, the acquirer pays the business part of the receivable in cash at a predetermined rate. Usually, payment on the receivable by the debtor is performed directly to the investor. At the date of the receivable payment, the investor receives his investment plus preset interests.
Businesses who want to improve their cash flow, that are checked by the analysis department of CREDITPLACE can sell you an invoice. At the trading platform, full information is displayed on business’ customers who pay the invoices, supplier information (except their name) and the collateral for the transaction.
The annual interest rate in CREDITPLACE’s trading platform ranges from 3% to 7%, depending on the risk of the transaction and the time period to maturity.
Each business interested in selling its receivables through CREDITPLACE’s system undergoes professional underwriting by our analysis department. The businesses provide CREDITPLACE with a variety of financial documents that allow us to check the quality of the transaction. Our quality check analyses the payer, the business, and their mutual history. All of the found data is fed into a rating model designed specifically for these types of transactions, and the transaction is rated and priced accordingly.
CREDITPLACE provides each transaction a rate, with one star being the lowest and five stars the highest.
The transaction debtors are large and well-known companies surveyed by CREDITPLACE analysis department. We check the authenticity of invoices and shipping documents for you before purchasing. When a business sells an invoice, it is selling the ownership of the payment and the credit risk, so the investor is the owner of the debt against major companies. Each transaction is structured by a composition of collaterals depending on the stability of the business and its debtors.
Irrevocable provision signed by the debtor / Held as security – provision of supplier approved by debtor / held as security for direct debt payment to CREDITPLACE.
Assignment of rights with / without recourse to supplier – the ownership of debt is assigned to investor but if the debtor does not pay, possible return with / without recourse to supplier for payment of the debt.
Supplier / debtor self-check – a check from the supplier / debtor as payment.
Shareholders guarantee of supplier / Parent Corporation – supplier liable by personal guarantee for debt payment / of Parent Corporation. Customers credit insurance – payment of debt insurance at the credit risk insurance company.
CREDITPLACE currently holds a license as a service provider from the Ministry of Finance and is subject to all the obligations of this regulator. In addition, funds are secured in a trust account managed by BDO/Ziv Haft – with legal advice from the leading law firm in the country, Meitar Liquornik.
Profits are subject to capital gains tax reduced by 15%. The capital gains tax is deducted at source by us and transferred to the IRS, so that the profits transferred to you are net earnings.
Your money is kept in a trust account managed by the accounting firm BDO/Ziv Haft to ensure full protection for your money. Any amount transferred by the investor is transmitted directly to the trust account and is not held by CREDITPLACE itself. After the company produces documents indicating the existence of the transaction to the satisfaction of the Trustee, the funds are transferred for the transactions’ purchase. The Trustee also protects investors upon settlement of the transaction by the debtor – money is transferred into the transfers account and then returns to investors with profit.
Yes. The advanced trading platform of CREDITPLACE shows extensive information on transactions and leaves you the option to purchase only the transactions you want. Additionally, the platform includes advanced systems with capabilities to perform investments for you.
The investment period ranges from 30-120 days, so you can decide which period you want to invest in. At the end of the investment period, you can decide whether to withdraw your money and the profits or investing into a new deal.
For investors who want even more flexibility, we have developed CreditGo, a system which automatically studies your investing profile and purchases transactions similar to your profile. At any moment you can change to an investment profile that you prefer.
CREDITPLACE charges 10% plus VAT out of the interest paid to you in any transaction. You will only be charged when the interest is paid.
Yes. Interest is paid every day, including delayed holding days.
In a situation where the transaction is not paid, CREDITPLACE works with our law firm to benefit investors. CREDITPLACE charges investors the collection costs.