accounts receivable financing definition

accounts receivable financing definition

Glossary: accounts receivable financing

Accounts Receivable Financing is a form of financing which uses accounts receivable as collateral for a loan. Accounts receivable financing is different than factoring in that the party providing the financing does not own the invoice and is not responsible for collecting the debt.


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Definition: accounts receivable financing

Factoring provides cash to your business with no time delay from issuing invoices as well as sales ledger and collection services.

Accounts Receivables Financing (Factoring): The invoices you issue upon a sale are sent to the factor who typically advances up to 80 to 90% of the invoice amount to you.

Factoring Glossary - Define: accounts receivable financing - 2004 HJ Ventures International, Inc.