Remove articles accounts-receivable-securitization
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Short term sources of funds

Accounting Tools

Collect Receivables Faster You can add staff and use a variety of procedures to accelerate the payment of accounts receivable by customers. Enter Into a Factoring Arrangement Factoring is funding based on accounts receivable. This is essentially an interest-free loan , but can only be used with care.

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Assignment of accounts receivable

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is the Assignment of Accounts Receivable? Under an assignment of accounts receivable arrangement, a lender pays a borrower in exchange for the borrower assigning certain of its receivable accounts to the lender.

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Special purpose entity definition

Accounting Tools

A special purpose entity can also be designed for the reverse situation, where the assets it holds are secure even if the related corporation enters bankruptcy (which can be important when assets are being securitized). Related Articles Special Purpose Acquisition Companies (podcast)

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How to account for a factoring arrangement

Accounting Tools

Factoring involves the sale of receivables by a seller to a finance company, which is called the factor. Accounting for a Factoring Arrangement Essentially, a factoring transaction is recorded as a sale of the receivables, and a gain or loss (usually a loss) is recognized on the receivable transferred to the factor.

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Accounts receivable discounted definition

Accounting Tools

Related Courses Corporate Finance Working Capital Management What is Accounts Receivable Discounted? Accounts receivable discounted are unpaid billings to customers that have been sold to a third party in exchange for cash.

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Commercial paper definition

Accounting Tools

Related Articles Accounts Receivable Financing Accounts Receivable Securitization Crowdfunding Equity Financing How to Get Venture Capital Funding Short Term Sources of Funds

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Accounts receivable pledging definition

Accounting Tools

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is Accounts Receivable Pledging? Accounts receivable pledging occurs when a business uses its accounts receivable asset as collateral on a loan , usually a line of credit.