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.


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.

  1. Asset Rationalization

    Reorganizing a firm's assets in order to improve operating efficiencies ...
  2. Organic Sales

    The term "organic sales" refers to revenue generated from within ...
  3. Recourse

    A legal agreement by which the lender has the rights to pledged ...
  4. Net Receivables

    The total money owed to a company by its customers, minus the ...
  5. Asset

    1. A resource with economic value that an individual, corporation ...
  6. Liability

    A company's legal debts or obligations that arise during the ...
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  1. What happens if a company doesn't think it will collect on some of its receivables?

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    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  3. Do working capital funds expire?

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  4. How much working capital does a small business need?

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