The uniqueness of short-term collateralization (English)

The author finds evidence that lines of credit secured by accounts receivable are associated with business borrowers with a high risk of default. While an unsecured short-term loan is repaid from the borrower's future cash flow, a loan secured by accounts receivable (a unique form of "inside" collateral) is repaid from previously generated and observed sales (the borrower's trade credit terms to its customers). Consequently, lenders that secure accounts...

DETAILS

Author

Klapper,Leora;
Document Date
2001/02/28
Document Type
Policy Research Working Paper
Report Number
WPS2544
Volume No
1
Total Volume(s)
1
Disclosure Date
2010/07/01
Doc Name
The uniqueness of short-term collateralization
Keywords
account receivable

DOWNLOADS

COMPLETE REPORT

Official version of document (may contain signatures, etc)

Official PDF
TXT*
Total Downloads** : 1661
Download Stats
*The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Klapper,Leora.

The uniqueness of short-term collateralization (English). Policy, Research working paper ; no. WPS 2544 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/632591468739154506

The uniqueness of short-term collateralization (English)

DETAILS

DOWNLOADS

COMPLETE REPORT

Citation

SUBSCRIBE TO EMAIL ALERTS