accounts receivable financing
Definition
Using amounts owed by customers as collateral in raising a secured short-term loan on a one-time or on a continuous basis. In case of a default, the lender has the right to collect receivables directly from the named debtors of the firm. It is a type of 'off balance sheet' financing. See also discounting and factoring.
accounts receivable financing is in the Accounting & Auditing, Banking, Commerce & Finance and Entrepreneurship, Management, & Leadership subjects.
accounts receivable financing appears in the definitions of the following terms: receivables financing and pledging of accounts receivable
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