Most commercial financial transactions follow a well-established process A ...
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).
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Accounts Payable Financing allows a company to pay its supplier immediately (cash on delivery or COD) without having to use their own working capital. This is also known as trade credit financing. This type of financing gives the company a…
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Also known as A/R factoring, factoring or general factoring. Factoring designed specifically for trucking companies is referred to as freight factoring.
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