accounts receivable financing

accounts receivable financing definition - finance
Obtaining funds by selling a companyÂ’s accounts receivable. Typically, a company that sells accounts receivable takes less than the full amount for the money owed on the accounts. The advantage is that the funds are obtained now rather than later, which eliminates credit risk. It also allows company management to focus on business issues instead of on collecting payments.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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