#reading-38-working-capital-management
Small companies with poor credit quality usually raise money by selling receivables. Receivables securitization is a higher cost of funds used by companies with poor credit quality.
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Open it Commercial papers are mostly issued by large, creditworthy companies as they can get the lowest cost of financing by issuing such paper. Small companies with poor credit quality usually raise money by selling receivables. Receivables securitization is a higher cost of funds used by companies with poor credit quality. Commercial papers are usually used by non-banking corporates. Summary
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