Q: In a few words, what is InvoiceAuction?
A: InvoiceAuction is a B2B-platform centralizes the negotiation of discount terms among a Buyer and its Suppliers via an auction tool. It is a mechanism for Buyers to deploy excess cash profitably through inviting its Suppliers to participate in an auction, bidding for a share of a predetermined amount of prepayment money against discounts on approved invoices.
Q: Why does it make a difference for a Supplier to participate in an auction run by InvoiceAuction than, say, offering discounts in a traditional way to the Buyer?
A: InvoiceAuction informs Suppliers about the decision of a Buyer to put up monies for early payment and allows Suppliers in each case to decide whether, when and how much to offer in terms of a discount on an approved invoice.
Q: Does InvoiceAuction require any information about the Buyer-Supplier-relationship which amount to trade secrets?
A: Except for the pre-determined amount of money to be made available by the Buyer for immediate payment of approved invoices, and the following details of approved invoices (Invoice-ID, Supplier- identity, the currency, the amount and the due date of the invoice), InvoiceAuction does not need any further information whether from a Buyer or its Suppliers for the purpose of offering its services.
Q: Does the Buyer see my bid(s)?
A: InvoiceAuction conducts a sealed-bid-auction, i.e. if a Supplier makes a bid, none of the other bidders nor the Buyer will see any of the bids made. Rather, only the information on the winning bids (including, obviously, information on the Supplier ID) will be transferred to the Buyer so that it can effect payment according to the bid. Moreover, bids which have not won will not be disclosed to the Supplier nor will he learn who has participated in the auction (except of the Suppliers with winning bids).
Q: Do I signal financial stress by participating in an auction?
A: No. Auctions will be held regularly. In addition, the auction is open to all Suppliers invited by the Buyer. It will therefore become a standard business practice to seek liquidity through InvoiceAuction not unlike other types of supply chain financing.
Q: With regard to the payment of approved invoices, does InvoiceAuction receive, hold, or pay any monies from, of, or to a Buyer or Supplier?
A: No. Payments on approved invoices will be made only between the respective Buyer and its Supplier without any involvement, whether contractual, administrative, or otherwise, by InvoiceAuction.
Q: Does InvoiceAuction in any way promise, guarantee, or otherwise secure the payment
of an approved invoice according to the auction results?
A: No. InvoiceAuction serves only as an interface/communication-tool between a Buyer and Supplier. It merely offers a platform for Suppliers to offer discounts on approved invoices to a buyer.
Q: Does InvoiceAuction in any way promise, guarantee, or document the approval or change of terms of an invoice submitted by a Buyer and bid upon by a Supplier?
Q: Does InvoiceAuction guarantee in any way the right of a Supplier to participate in an auction?
A: No. Participation is invitation-only from a Buyer.
Q: What will InvoiceAuction charge me for submitting or winning a bid?
A: Nothing. InvoiceAuction charges the Buyer for its Services. It does not render services to Suppliers.