Securitization delays the receipt of cash from sales made on credit.

Question

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Securitization is a financial process that involves pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations, and selling their related cash flows to third-party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations. This process actually accelerates the receipt of cash from sales made on credit by converting future cash flows into present capital.

Securitization Delays the Receipt of Cash from Sales Made on Credit