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Financing with Receivables: Factoring, Securitization and Collateral

Author

Listed:
  • Ioana Benea

    (PricewaterhouseCoopers Audit S.R.L.)

  • Florin Duma

    (Babes-Bolyai" University Cluj Napoca)

Abstract

Short term financing is vital for the financial survival of any company, because very often they are facing deficits of cash during their activity. Therefore a company has to identify the optimal solutions in order to cover those (temporary) deficits. A good solution to this problem is the financing with receivables using factoring, securitization and collateral. In this paper we try to analyze how this types of financing works and which are their advantages and costs. Also, we developed a reasoning pattern in order to evaluate the best receivables financing alternative for the Romanian companies.

Suggested Citation

  • Ioana Benea & Florin Duma, 2013. "Financing with Receivables: Factoring, Securitization and Collateral," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15), pages 79-86, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:79-86
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    File URL: http://feaa.ucv.ro/FPV/015-010.pdf
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    References listed on IDEAS

    as
    1. Altman, Edward I. & Saunders, Anthony, 1997. "Credit risk measurement: Developments over the last 20 years," Journal of Banking & Finance, Elsevier, vol. 21(11-12), pages 1721-1742, December.
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    More about this item

    Keywords

    Short term financing; financial management; liquidity; credit;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G39 - Financial Economics - - Corporate Finance and Governance - - - Other

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