Common Names for Alternative Financing Sources: Factoring Receivables and Equity Swaps

Samson Corp. needs to raise $100 million. Delilah Jones, CFA, the Treasurer of Samson, is considering two alternative sources of financing:

Alternative 1:Selling a large portion of the company's accounts receivable to a separate entity established solely for this purpose. This entity would then seek to obtain a higher credit rating than Samson's own BB rating, to reduce the required coupon rate on the bond issue.

Alternative 2:Issuing bonds, but simultaneously entering into an equity swap so that coupon payments can be covered by appreciation in the underlying equity index. Jones believes the equity index returns will be high for several years.

Identify the common names for these alternatives.