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.

Updated on: 26-Sep-2020

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