Current Asset ntroduction Securitization of Receivables Securitization(or factoring) is when a company sells all or a portion of its receivables to a third party Receivables can be sold with or without recourse to a seller (recourse refers to guarantee of collectibility) Sale of receivables with recourse does not effectively transfer risk of ownership Sale of receivables without recourse does not always transfer risk of ownershipSecuritization (or factoring) is when a company sells all or a portion of its receivables to a third party Receivables can be sold with or without recourse to a seller (recourse refers to guarantee of collectibility) Sale of receivables with recourse does not effectively transfer risk of ownership Sale of receivables without recourse does not always transfer risk of ownership Current Asset Introduction Securitization of Receivables