Securitization of receivables as an alternative for financing mercantile operations

Abstract

The need for financing commercial transactions can be considered a reality in most economic activities, regardless of the size and form of operation in the market. One of the main reasons is the mismatch of the average payment and incomes terms, which strains cash flow, requiring constant reinforcements to keep working capital in an amount sufficient to cover current expenses. This kind of tension occurs due to the increasing pressure from consumers for extended payment terms and the impossibility, or lack of flexibility, of suppliers to keep up with the referred term increase, resulting in an increase in time during which the company is without working capital in appropriate levels. The objective of the research, the results of which supported the preparation of this article, was to assess the feasibility of implementing securitization of receivables as an alternative for financing commercial transactions. The research was carried out in the manufacturing and distribution chain of electrical materials and electronic components. The results showed that securitization can contribute positively, to dilute risks and increase the financing capacity of operations of the actors involved.