Receivable Financing. Is Your Business Cash Flow...
- 15 years ago
Accounts Receivable Financing
This form of financing is a type of secured loan in which accounts receivable are pledged as collateral in exchange for cash. The loan is repaid within a specified short-term period as the receivables are collected.
Accounts receivable financing is most often used by businesses facing short-term cash flow problems. The major source of accounts receivable financing for small businesses are commercial finance companies, although banks will also consider receivables as security for a business loan.
This form of financing is a type of secured loan in which accounts receivable are pledged as collateral in exchange for cash. The loan is repaid within a specified short-term period as the receivables are collected.
Accounts receivable financing is most often used by businesses facing short-term cash flow problems. The major source of accounts receivable financing for small businesses are commercial finance companies, although banks will also consider receivables as security for a business loan.