The Securitization of receivables offers many benefits to originators of the credits. Some of the most outstanding advantages are listed below:
- advance of resources when the selling price of the portfolio is achieved. It consequently reduces indebtedness allowing the Seller to tailor their financing, thereby reducing the costs in connection with funding (whenever applicable);
- reduction of internal and external collection costs;
- the automation of collections eliminates the decision taking practice from the process;
- prompt legal procedures are taken whenever required;
- immediate tax savings. Clients will have the benefit of reducing the income tax from the discount given for the sale of the portfolio;
- less risks for the Seller as the receivables assigned will be incorporated into the Buyer’s assets;
- it allows the Seller to concentrate their collection efforts in other portfolios or activities, thereby opening new opportunities for the business;
- it creates a track record for new future operations.