Accounts receivable financing

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Accounts receivable financing

A short-term financing method in which accounts receivable are collateral for cash advances. See: Factoring.

Accounts Receivable Financing

The selling of a firm's accounts receivable to a third party, known as a factor. If a firm is not confident in its ability to collect on its credit sales, it may sell the right to receive payment to the factor at a discount. The factor then assumes the credit risk associated with the accounts receivable. This allows the firm access to working capital immediately, which is important especially if the firm might otherwise have a cash flow problem. The price of accounts receivable financing is determined by the creditworthiness of the firm's customer, not of the firm itself. See also: Debt assignment.
References in periodicals archive ?
Alleon Healthcare Capital, a specialty finance company focused on providing medical receivables financing, medical receivables factoring, and cash flow solutions to medical providers in the US, said it has closed three new medical receivables financing facilities totaling USD2.
Bank Muscat has launched a firstA[degrees]ofA[degrees]itsA[degrees]kind point of sale (PoS) receivables financing for micro and small businesses.
Global Banking News-August 31, 2015--Bank Muscat launches PoS receivables financing
Bank Muscat as part of its commitment to encourage entrepreneurial initiatives, has launched a first-of-its-kind point of sale (PoS) receivables financing for micro and small businesses.
Assuming that these obstacles are not insurmountable for the nursing home, banks and finance companies are the most obvious source of receivables financing.
Businesses drive down their cost of capital 30%, on average, on innovative receivables financing marketplace
Global Banking News-June 21, 2013--HSBC Malta launches receivables financing solution(C)2013 ENPublishing - http://www.
Skada Capital specializes in commercial real estate financing, accounts receivables financing, credit card receivables financing, leasing, and other alternative sources of financing.
Research Shows Businesses Make Cash Flow a Top Priority; 300% Quarter-over-Quarter Growth in Receivables Financing
NEW ORLEANS -- Under-capitalized small and mid-sized businesses are turning to receivables financing for much-needed liquidity in the midst of the nation's worst credit crisis in recent history.
New referral program broadens investment base for capital providers of receivables financing
Trade receivables financing, also known as invoice factoring, enables a business to convert accounts receivable into immediate funds instead of waiting for payment when the receivable is due.