Cherokee Acquisition's Claims Put Market help Vendors Protect Risk Accounts ReceivablePosted Jun 12, 2020
Claims Put Market (www.claimsputmarket.com) is the first platform to match vendors seeking credit protection on risky accounts receivables with investors offering protection. The advantage to a vendor of Claims Put Market is that their requested put option is shown to multiple investors that a vendor might not otherwise find. This “broadcasting” of a vendor’s requested put option results in a more transparent and fair market. Claims Put Market uses a put option agreement called a Simple Claims Put that transfers the bankruptcy risk of a single customer.
Claims Put Market has developed three key innovations:
Transparent platform: a vendor’s request to purchase a put option is shown to multiple well capitalized investors. These investors compete to offer each vendor the best price and terms. After agreeing on price and terms, a vendor can review the matched investor’s financial information prior to closing.
Simplified documents: our Simple Claims Put is a three and one-half page agreement. In the event of a customer’s bankruptcy, the vendor sells (or puts) its valid receivables to the investor at a pre-negotiated purchase rate, subject to the terms of the Simple Claims Put. This sale is effectuated through an agreement called a Simple Assignment of Claim.
Transparent reference prices: most vendor put options are priced with reference to Credit Default Swap (CDS) prices. We display CDS prices of customers of interest to the vendor community. Viewing displayed CDS prices gives vendors a sense for the potential price of a put option.
Claims Put Market is owned by Cherokee Hybrid Markets, Inc. and leverages off the success of Cherokee’s Claims Market platform (https://claims-market.com/) and the growing acceptance of the Simple Assignment of Claim (https://s3.us-east-2.amazonaws.com/claims-market-assets/sac.pdf) among sellers and buyers of bankruptcy claims.
Cherokee Acquisition and its affiliates are leading innovation in the markets for vendor put options, receivables finance and bankruptcy claims. The Cherokee Acquisition team are experts in credit investing, private debt trading and receivables-based finance. To learn more about Cherokee visit: https://cherokeeacq.com/, or contact Vlad Jelisavcic at [email protected].