CFOs & Treasurers face pressure to optimize working capital, diversify funding sources, and enhance liquidity access. Two tools, Accounts Receivable Securitization & AR Monetization (AR Purchasing) are evaluated independently though both rely on the same underlying asset and can be complementary when applied thoughtfully. The session brings perspectives on how AR securitization programs are structured as private, committed credit facilities, what drives economics, and how receivables characteristics (e.g., diversification, payment performance, dilution, & customer credit quality) impact availability & pricing. On the monetization side, learn how companies use dynamic discounting and AR purchase programs to accelerate cash conversion, reduce DSO, and strategically manage supplier & customer relationships. We will compare operational, data & reporting requirements, how to leverage receivables to improve WC efficiency, reduce weighted average cost of debt, & support corporate objectives. We will highlight considerations, e.g., refinance higher cost debt, funding growth, reduce revolver reliance, or create incremental intraday liquidity. Attendees will determine whether securitization, monetization, or a hybrid approach works best.
Session Outcomes
By the end of this session, participants will:
- Gain a clear understanding of what AR securitization is, how it is structured, and how it differs from AR monetization programs such as AR purchasing.
- Be able to evaluate when each solution is most appropriate by assessing factors such as receivables diversification, customer credit quality, payment behavior, systems/data readiness, and treasury objectives.
- Understand the high-level benefits each approach can provide, including improved working capital efficiency, potential reductions to weighted average cost of debt, enhanced liquidity visibility, reduced reliance on traditional credit lines, and better alignment of funding with the performance of receivables asset.
These outcomes will equip attendees with a practical framework that can bring back to their organizations to determine whether securitization, monetization, or a blended strategy best supports their liquidity and operational goals.
Learning Objectives
- Learn how AR securitization programs and AR monetization solutions are structured, funded, and managed.
- Identify the indicators that determine whether AR is eligible for funding, sale, or discounting.
- Gain a framework for assessing how AR programs can lower cost of funds, improve working capital, and reduce dependence on traditional credit lines.