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.
This content can be found on the following page:
http://www.investorwords.com/cgi-bin/getword.cgi?id=54&term=accounts%20receivable%20financing
email to a friend
print this definition
cite this definition
link to this page
Copy and paste this HTML in your website to link to this page
'accounts receivable financing' appears in the definitions of these other terms on BusinessDictionary.com:
receivables financing, pledging of accounts receivable, inventory financing
Related Research Articles from the InvestorGuide.com University
Saving Have extra money lying around? This article tells you why you should save and how much you should save, with specific emphasis on creating an emergency fund, and when to invest in high-risk, high-return ventures.

Introduction to Budgeting Learn how to get your financial house in order. Here we describe the overall approach we recommend: choose a system, calculate your current income and expenses and compare the two, set specific goals and monitor your progress as you work toward them.

Income and Expenses Information on necessary steps in any budgeting process. Topics include determining your income, determining your expenses (whether they are fixed committed expenses, variable committed expenses, or discretionary expenses), and comparing the two.

|