Accounts receivable financing definition
What is "accounts receivable financing"?
Accounts receivable (A/R) financing is where a bank, business, or individual makes a loan to the business that holds the accounts receivable, but which have not yet been collection.
This kind of financing is always for the purpose of acquiring working capital. For healthy businesses, A/R financing is an excellent growth strategy with affordable terms. For unhealthy companies, it is often an act of desperation, with prohibitively expensive terms.
Search again for asset-based financing, factoring and accounts receivable financing terms.
© 2007, Small Business Network, Inc., All Rights Reserved.
AskJim ID: 3333