EPD Arbitrage™

Early-Pay Cash Discounts (EPDs) have been around since the beginning of financing in this industry and can

be a viable method to boost a companies gross margin.

EPD Arbitrage™ provides a better return than just about any other investment you could make in this low-interest-rate environment. For example, terms of 1.5% 10/Net 30 provide you the opportunity to earn a 6-10% return without accelerating your payment or allocating business assets.

EPD Arbitrage™ is a financial transaction in which a business takes advantage of early-pay cash discounts with the help from a third party. Businesses utilize a EPD Arbitrage™ provider, to archive a greater discounts without allocating the company's owns assets.

Usage

In the typical 2 % Net 10 terms the third party provider will pay the customer's invoices in full on or before the 10th calendar day (including weekends and holidays) of when the goods were dispatched by the seller or the services were fully provided. In exchange for the paying the customer's invoices the third party will share in the cash discount. The customer then pays the invoice in full to the third party minis a percentage of the cash discount within 20 days of original invoice date. The seller takes advantage a portion of the cash discount while still paying net 30.

The company must be considered suitable to receive credit and have an acceptable credit rating. A full assessment of the likelihood that a seller will default on their debt obligations. It is based upon factors, such as their history of repayment and their credit score. Third party providers also consider the availability of assets and extent of liabilities to determine the probability of default.

Sometimes referred to as selling payables

The EPD Arbitrage™ financial transaction was founded in 2013 by BlackCastle Holdings lp

.