How does it work?
A securitisation programme is based on the sale of trade receivables to a Special Purpose Vehicle (SPV), which issues debt to funders. Funders finance the purchase of these receivables. Debt issued by the SPV is at an implied credit rating. This reduces funding costs compared to other types of financing available to the seller.
The level of financing is based on portfolio performance as a whole, not on specific debtor names.
Access to committed funding
Potential off-balance treatment
Access to trade receivables assets
Attractive risk-return profile