Your Resource Guide to Accounts Receivable Financing
Accounts receivable financing is nothing but selling your outstanding invoices or receivables at a discount either to a factoring or finance company, which assumes risk on the receivables and gives you instant cash for your business. Depending on the age of a receivable, the amount of value is assigned to the account. Business houses use these loans in order to avoid the bad cash flow in the company. Sources for accounts receivable financing could be commercial financial institutions and banks. Accounts receivable is also known as accounts receivable funding or accounts receivable factoring.