Accounts Receivable Financing
/ˈakaʊnts rɪˈsiːvəbl̩ ˈfaɪnænsɪŋ/
Definitions
- (n.) A financing arrangement wherein a business uses its accounts receivable as collateral to obtain funds from a lender.
The company secured immediate cash flow through accounts receivable financing by leveraging outstanding invoices.
Forms
- accounts receivable financing
Related terms
See also
Commentary
Accounts receivable financing is distinct from factoring, though both involve receivables; drafting should clarify control and collection rights.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.