Forming a special purpose entity (SPE) is a common way companies securitize receivables.

Name: Forming a special purpose entity (SPE) is a common way companies securitize receivables.
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A special purpose entity (SPE) is a legal entity created for a specific purpose, such as securitizing receivables. This allows companies to transfer assets off their balance sheets and obtain financing at a lower cost.

Forming a Special Purpose Entity (SPE) Is a Common Way