• Sharebar

Can someone let me know the accounting for an AR securitization facility? I know it's generally considered off-balance sheet debt, but I also thought that it acted similar to a revolver and was only an available traunch of debt that a company can draw upon when needed. So, assuming that I securitize $100mm of my AR, would that simply be an off-balance sheet activity and only impact my statements if I draw on it. So, assuming that I utilize $20mm of it, then debt and cash would increase by the $20mm?

The WSO Advantage - Investment Banking

Financial Modeling Training

IB Templates, M&A, LBO, Valuation + Learn More.

IB Interview Prep Pack

30,000+ sold & REAL questions Learn More.

Resume Help from Actual IB Pros

Land More IB Interviews. Learn More.

Find Your Perfect IB Mentor

Realistic IB Mock Interviews. Learn More.