Is securitisation right for your receivables?

• Overview: This section provides an executive summary of the contents and perspectives shared in the guide;
• Go/No-Go: This section introduces a se of high-level questions to help determine which programme - factoring, securitisation, or both - may be a good fit for your receivables and worth evaluating further;‍
• 7 Key Factors: This section explores seven factors that drive the economics of a receivables finance programme, and how they can be used to compare programmes on offer and evaluate their all-in cost;‍
• Worked Example: This section applies the decision criteria to an example portfolio, comparing the all-in cost of a factoring versus a securitisation programme;‍
• Running A Receivables Securitisation with Gardenia: This section provides an overview of what is like to run a Receivables Securitisation Programme with Gardenia, from headline benefits to day-to-day operations;
• ‍Buyer's Checklist: This section provides a set of questions that can be used when evaluating a programme, to clarify to your priorities and prepare for a deeper conversation about the programme’s economics and all-in cost;
• Glossary: This section provides definitions of some of the key terms related to receivables finance programmes.

When is a receivables securitisation the right choice? For businesses with a diversified receivables book, seeking medium- to long-term funding, a receivables securitisation typically outperforms across the key core decision drivers.

When is a receivables factoring programme the better alternative? Factoring may be the better option for businesses with a small receivables book, looking for short-term funding to meet a specific liquidity need.

What are the key drivers of programme economics and cost? The difference between the two programmes is often missed in the headline terms. While factoring facilities can offer better headline pricing, they typically carry structural characteristics that materially increase the effective cost of funding, as well as limiting its durability and stability in the medium- and long-term.