It stands for hold to collect and sell; a business model with an objective to contractual cash flows from financial assets and sell these assets any time during term of maturity. This is opposite to the hold to collect business model in which the objective is to only collect contractual cash flows financed by such assets.

This model may also suit many other objectives, including managing everyday liquidity needs, maintaining a certain interest yield profile, or matching the duration of the financial assets to the duration of the financial liabilities funded by these assets.

An entity is required to reassess its business model at each reporting period in order to consider any changes thereto, and the evaluate the necessity to change it. For example, an increased volume of sales of assets within a portfolio that is currently classified under ‘hold to collect’  business model may imply that the business model has changed and that it would defy current reality to classify additions to the portfolio under the same model.