Asset Sales
Definition of 'Asset Sales'A sale of bank receivables by a bank to another party. Asset sales are often accomplished through the sales of individual loans or pools of whole loans. Asset sales are nonrecourse sales that are also sometimes accomplished through the securitization of the bank's receivables. These types of transactions are used to mitigate asset-related risk, obtain free-cash flows and for liquidation requirements, among other reasons. |
|
Investopedia explains 'Asset Sales'Asset sales are a complex transaction from an accounting perspective. An asset sale is classified as such if the seller gives the buyer control of the property after payment is made. There cannot be further recourse to the buyer; this characteristic will cause the transaction to be regarded as financing. |
Related Definitions
Articles Of Interest
-
Small Business: Speed Up Receivables To Avoid A Cash Crunch
Waiting for customers to pay can be a losing game. Look to factoring for quicker cash. -
Analyze Investments Quickly With Ratios
Make informed decisions about your investments with these easy equations. -
Investing In Securitized Products
Securitized assets are customizable and have a wide range of yields, making them an attractive asset class. -
Assessing Bank Assets: Are Your Savings Safe?
Learn how to determine if your assets are safe or if your bank has spread itself too thin. -
What happens if a company doesn't think it will collect on some of its receivables?
The accounts receivable account, or receivables for short, is created when a company extends credit to a customer based on a sale. However, there are times when a company will not collect on ... -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Financial Statement: Extraordinary Vs. Nonrecurring Items
When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ... -
Get A Career In Showbiz Accounting
An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting. -
What Management Accountants Do
If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you. -
The Basics Of A Financial Analysis Report
Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ...
Free Annual Reports