Taking outstanding debt and making it collateral on a shortterm loan. This is often done on a continious basis or simply as soon as. The loan is secured. If standard does occur the lending company collects in-off stability sheet. Relate to discounting and factoring.
making use of quantities owed by clients as security in raising a secured temporary loan on a one-time or on a continuous basis. In the event of a default, the lender gets the directly to collect receivables directly from called debtors associated with company. Its a kind of 'off balance sheet' funding. Also known as pledging of reports receivable. See in addition discounting and factoring.