1) How does secured borrowing differ transaction-ally from a sale of receivables? Please explain

2) A company may find themselves in need of cash now but are unable to take out loans either because doing so will violate a lending agreement or for another reason that is preventing them from gaining access to loans".

To add ,A sale of receivables means that that the receivables are removed from the books of the seller and placed on the books of the buyer

Question: A sale of receivables may take place on either a without recourse basis or with recourse basis. What does a sale of receivable with recourse mean....please explain

3) the billing and collection process of receivable is too time-consuming and costly, therefore large companies might sell their receivables"

To add billing and collection of receivables are often time-consuming and costly. Some companies prefer not to wait to collect their receivables but prefer to collect upfront. A lot of mortgage companies prefer just to underwrite the mortgage and then to sell the mortgage to another company who will sit back and collect

QUESTION: A sale of receivables may take place on either a without recourse basis or with recourse basis. What does a sale of receivable without recourse mean....please explain

4) Store X is factoring some of its receivables. The factor has indicated that it will require RECOURSE on the sold receivables

Question: Explain how RECOURSE will be reflected in Store X''s financial statements after the sale of the receivables