Three main ways to finance Trade Credit:
1. secured debt: asset-based A/R financing. This is the most common. Secured debt is different than "securitization" in that this is a private deal between you and your lender. They are taking legal claim to some of your assets in case you dont pay...then at least they already own land, building, etc.
2. captive finance company: available just to large companies with good credit ratings. You set up an indepent subsidiary of your company with limited liability.
3. securitization: you sell your A/R (accounts receivable) to a financial institution, who then packages a number of them together and sells them on the market to investors.
see also :
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