What is Accounts Receivable (A/R)?

Accounts Receivable are monies owed to a company by their customers (another business, a government entity or individual) for goods or services sold on terms. Accounts receivable are a Current Asset on a company’s Balance Sheet. In most businesses, the “bodies are buried” in the A/R and the inventory. For example, A/R over 90 days past due or of questionable collectability should be moved to Bad Debt so as not to be counted.

Besides cash, A/R is the most liquid asset on a business’ balance sheet and is the most readily monetized via invoice factoring, accounts receivable financing or Asset-based Lending (ABL).

The Advantages of

The Advantages of "One Stop” Purchase Order and Accounts Receivable Financing

Most commercial financial transactions follow a well-established process:  A transaction starts with a purchase order, an electronic or paper document issued by the Buyer detailing the…
Using Accounts Receivable Financing for the Liquidity

Using Accounts Receivable Financing for the Liquidity

When running your business, a cash shortage can be a nightmare. You must pay bills, pay staff and order the goods that keep your business…
Five Tips for Following Up on Accounts Receivable

Five Tips for Following Up on Accounts Receivable

It can be one of the greatest frustrations of owning your own trucking company – you do a great job delivering safely and on time, but…