thisisbrianly

Well it depends who CFOs are you talking about. When you sell the receivable, company selling it has immediate gain from the transaction and company doesn't need to worry about collection and the loan. Collection agencies are counter party in this case. Collection agency looks at the receivable quote the price looking at the nature of customers, bad debt history etc and buy it either at market price, more than market price, or less than market price.

Securitization is done through SPVs. This is basically to reduce the borrowing cost but remember SPVs are also part of the company itself. While reporting you will have to incorporate the data for SPV as well but while taking loan since it's a separate entity, borrowing cost will be lower, especially if the parent firm is not doing good. Parent firm will get the loan at higher price but SPV will be able to get a much lower price.