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.
Audio Definition/Pronunciation
OTHER TERMS BEGINNING WITH "A"
- A/P or Accounts Payable Aging
- A/R or Accounts Receivable Aging
- Account Debtor
- Accounts Payable (A/P)
- Accounts Payable Financing
- Accounts Receivable (A/R)
- Accounts Receivable Verification
- Accrual vs Cash Basis Accounting
- After Action Review (AAR)
- Aging Report
- Appraisal
- Articles of Incorporation
- Asset
- Asset Based Lending (ABL)
- Assignee
- Automated Clearing House (ACH) & ACH Loans
