Write the difference between securitization and factoring.

The major differences between cash flow and free cash flow are as follows −

Securitization

• It is related with loans.
• It is something with loans.
• Medium or long term.
• Agencies will look after collections.
• Originator will take portion of credit risk.

Factoring

• It is related with book debts.
• It is something with bills receivables.
• Short term.
• Factor will look after collections.
• Factor will take 100% credit risk.