Accounts Receivable Financing
Knowledge Center
|
|
Accounts Receivable FinancingKnowledge Center |
9 items • 21.100 visits
What is Accounts Receivable Financing? Meaning.Accounts Receivable Financing is obtaining funds via a loan by using a company's accounts receivable as a collateral. Normally, the company that "sells" its accounts receivable receives less than the full amount for the money owed on the accounts. The main benefit of this approach is that the funds are obtained now rather than later. But credit risk is not eliminated. This form of financing uses accounts receivable as collateral for a loan. This is different than factoring in that the party providing the financing does not own the invoice and is not responsible for collecting the debt.
Compare with: Factoring | Debt Restructuring |
|
||||||||||||||||||||||||||||||||||||||
| Return to Management Hub: Finance & Investing More on Management | Return to Management Dictionary |
|
This ends our Accounts Receivable Financing summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2022 12manage - The Executive Fast Track. V15.8 - Last updated: 6-7-2022. All names ™ of their owners.
Log in
3
