revolving trade / leasing receivables

JAlvaro

Senior Member
Ecuador/Spanish
Hi,

I'm not sure about the financial meaning from above terms. Please, does anybody know what these mean in next context??

A bank may set up a single seller conduit to raise funding for its own activities, backed by assets it has originated itself, or it could create a multi seller conduit to provide funding for customers, for example, backed by pools of revolving trade or leasing receivables.

Thanks a lot
 
  • SPQR

    Senior Member
    US
    American English
    Hi,

    I'm not sure about the financial meaning from above terms. Please, does anybody know what these mean in next context??

    A bank may set up a single seller conduit to raise funding for its own activities, backed by assets it has originated itself, or it could create a multi seller conduit to provide funding for customers, for example, backed by pools of revolving trade or leasing receivables.

    Thanks a lot
    A "revolving trade" is an account which you pay on a monthly basis and you have a minimum balace.

    "Leasing receivables" are the amount of money that you would receive from all of the leases that you have control of. So if you own a house and lease it to someone, they will send you money monthly (you hope).

    Both of these are "assets" in the sense that their potential money flow represents something that could be used to back a loan.
     
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