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Fitch, in turn, has become an unwitting participant in a lawsuit that seeks to subpoena its analysis of an NCFE-financed deal that cratered amid allegations that NCFE misrepresented the quality of the receivables to Fitch.
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"If there are more perceptions of concerns about the quality of leases and receivables, whoever buys the business is going to ask a lot more questions so they don't get heat from their own shareholders," Mr. Giroux said.
"We provide electron-level transparency," says Nic Perkin, a co-founder of The Receivables Exchange.
"Growth of the receivables portfolio has been tremendous," says Dreher.
Adding to the uncertainty, new federal rules could prohibit the transferring of medical receivables on privacy grounds, an unintended consequence that would bring the securitization of the receivables to a near halt if the rules stand.
Should it be necessary to arrange for factoring of the receivables, interest expense would increase.
Quality of the lumber.
Groupon is essentially holding a portfolio of loans backed by the receivables of small businesses.
Does it change the amount of cash, the amount of receivables, the inventory, amount of properties, or an expense?
The "receivables" of $330m equated to four and a half months' revenues.
The result is the overall net accounts receivable, expressed as a percentage of the accounts receivable balance.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com