accounts receivable financing

Definition

The selling of a company's accounts receivable, at a discount, to a factor, who then assumes the risk of the account debtors and receives cash as the debtors settle their accounts. A firm that sells its accounts receivable may not be confident of its ability to collect those debts, or might think that the cost of collecting that debt is more than the discount which must be provided to the factor when of selling their receivables. also called accounts receivable financing.

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The accounts receivable financing was an area that we liked a lot and there was a lot of things we had to look at.

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You should try to make sure that you are doing things in the correct way when dealing with accounts receivable financing.

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After a long and difficult struggle, we opted for accounts receivable financing, and there was a palpable sense of gloom in the air around the office.

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