Cross-Border Trade Receivable Securitizations

Trade receivables securitization is one of the primary means through which middle market and investment grade companies alike are able to obtain more efficient and cost- effective financing, manage their balance sheets and diversify their financing sources. As multinational companies continue to look to trade receivables securitization as an integral solution to their financing and balance sheet needs, this note draws upon these and other transactions to highlight some key distinctions between a typical trade receivables securitization in the United States and a trade receivables securitization involving foreign jurisdictions. Originators, lenders and purchasers of trade receivables will observe that cross-border trade receivables securitization adds complexity, and some comforts of home will not be available outside the United States.