A continuing agreement by a bank, factor or other means of financing to (1) make a loan secured by its customer's receivables; (2) retain right of recourse for losses, and (3) advance funds on accounts without notice to borrower's customers.
Selling of outstanding receivables for cash to any other company at a discount, which then assumes the risk on the receivables.
An agreement with a bank, factor or other source of financing which: 1. Provides a loan secured by the borrower's accounts receivable; 2. Permits a borrower to retain responsibility for losses; 3. Enables a lender to advance funds on accounts with or without notice to the borrower's customer, usually an agreed percentage of the face value of the account receivable.
Accounts receivable turnover Accredited investor Accretion (of a discount)
Financing where the company's accounts receivable are used as collateral. This type of financing is usually short-term in nature.
Obtaining a loan by pledging accounts receivable to a lending institution as collateral security for the loan.
short-term financing whereby accounts receivable serve as collateral for working capital advances. See also FACTORING.
A short-term financing technique for working capital purposes, loans to a company are collateralized by a security interest in a company's account receivables. Account receivables serve as collateral, and loans are made on a percentage of eligible assets pledged.
A financing technique for working capital purposes, collateralized by a security interest in a company's accounts receivable. Accounts receivable serve as collateral and advances are made on a percentage of eligible assets sold to the finance company.
A short-term financing method in which accounts receivable are collateral for cash advances.
is an asset-based loan that assists business cash flow by leveraging up to 90% of the value of the business receivables. Accounts receivable financing relinquishes receivables department to a lender who collects borrower's customer payments to repay against the loan.
A form of financing which 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.
If a corporation is in need of short term financing, it may try to obtain accounts receivable financing. If obtained, the corporation's accounts receivable is used as collateral for working capital advances. See: Working Capital
Short-term financing obtained by pledging receivables to the lender (as collateral for a loan). This enables a business owner to draw against an established line of credit, dictated by a formula (a percentage of accounts receivable).