Accounts Receivable Financing

Knowledge Center

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.

Forum - Accounts Receivable Financing   Discussions about Accounts Receivable Financing. Quotes on Accounts Receivable Financing. Quotations Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to financing of accounts receiva (...)

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.