Holdings: The Uniqueness of Short-Term Collateralization

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The Uniqueness of Short-Term Collateralization

The author finds evidence that lines of credit secured by accounts receivable are associated with business borrowers with a high risk of default. While an unsecured short-term loan is repaid from the borrower's future cash flow, a loan secured...

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Bibliographic Details
Main Author:	Klapper, Leora
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	SECURED TRANSACTIONS COLLATERAL ASSETS ACCOUNTS RECEIVABLE BORROWING ARRANGEMENTS LETTERS OF CREDIT DEBT CONTRACTS ACCOUNT ACCOUNTING ACCOUNTS ACCOUNTS RECEIVABLE TURNOVER AGENCY PROBLEMS ASSET VALUE ASYMMETRIC INFORMATION AUDITING BAD DEBT BALANCE SHEET BANKRUPTCY BOOK VALUE BORROWER BORROWING BUSINESS RISK CASH FLOWS CASHFLOW COLLATERALIZATION COMMERCIAL BANKS COMMERCIAL LOANS CREDIT RATIONING CREDIT RISK CURRENT ASSETS DEBT DEPRECIATION DIVIDENDS EMPLOYMENT EXPECTED RETURN EXPECTED VALUE EXPENDITURES EXTERNAL FINANCING FEDERAL RESERVE SYSTEM FINANCIAL RATIOS FINANCIAL RESTRUCTURING FINANCING OPTIONS FIXED ASSETS FIXED COSTS FUTURE CASH FLOW HIGHLY LEVERAGED FIRMS INFORMATION ASYMMETRY INSURANCE INVENTORY INVENTORY TURNOVER LENDER LENDER OF LAST RESORT LENDERS LIQUIDATION LIQUIDATION VALUE LIQUIDITY LOAN LOAN AMOUNT MARKET VALUE MATURITY MORAL HAZARD NPV PRESENT VALUE PRIVATELY HELD COMPANIES PROBABILITY OF DEFAULT PRODUCTIVITY PROFIT MARGIN PROFITABILITY PUBLIC DEBT QUICK RATIO RISK NEUTRAL SALES SELLING SHAREHOLDERS SUBSIDIARIES TANGIBLE ASSETS TRANSACTION COSTS UCC WEALTH WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2001/02/1000481/uniqueness-short-term-collateralization http://hdl.handle.net/10986/15743

Internet

http://documents.worldbank.org/curated/en/2001/02/1000481/uniqueness-short-term-collateralization
http://hdl.handle.net/10986/15743