Assignment of Accounts Receivable

Assignment of Accounts Receivable

A loan collateralized by a company's accounts receivable. For example, if a company borrowed $1 million from a bank and then defaulted, the bank could collect the company's accounts receivable. In general assignment of accounts receivable, the lender may collect from all the company's receivables until it recoups the amount lent. In special assignment, the lender may only collect from certain accounts specified in the lending agreement. This concept is similar to, but distinct from, factoring.
References in periodicals archive ?
In addition, the financing arrangements with FGI Finance are accounts receivable factoring arrangements, which provide for the sale or assignment of accounts receivable by American Biltrite or its subsidiary to FGI Finance at a discount.
Full browser ?