BankBoston Securities has come up with a neat twist on receivables finance; EagleFunding. It gives companies about 85 cents on the dollar while giving the bank non-interest income.
EagleFunding issues commercial paper backed by BankBoston's credit. The borrowing company-time-share developers, relocation companies, and private-label credit card issuers-sells its receivables to a special purpose intermediary corporation, which sells them in turn to EagleFunding. EagleFunding then issues the paper.