What is Accounts Receivable Financing?

Accounts Receivable Financing is when a company turns its A/R (accounts receivable) into ready cash versus waiting 30, 45 or even 90 days for their monies. Banks and Asset Based Lending (ABL) finance companies offer this short-term business funding based on your company’s good A/R using a formula of availability (borrowing base). There may also be spot verification to determine the quality of your accounts receivable.

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OTHER TERMS BEGINNING WITH "A"