accounts receivable factoring
buying of discounted invoiced debts the buying of accounts receivable at a discount with the goal of making a profit from collecting them
These factors may make PLS deposits less attractive unless steps are taken to reform their structure to maintain their stability benefit without incurring undesirable treatment from regulators and accountants.
By Brandon Davies
Accounts receivable financing is used by companies facing short-term cash flow problems, and it can take many forms. The major source of accounts receivable financing is commercial finance companies and factoring companies, as well as banks that will consider receivables as security or collateral
Factoring is provided by financial institutions, for example banks and individual factoring brokers. It is a form of asset-based financing, where the factor provides funding based upon the values of a borrower’s accounts receivable, i.e. corporate debtors. The receivables are purchased by the factor
By Irena Jindrichovska
One of several measures used to assess operating performance, accounts receivable turnover also helps in appraising a company’s credit policy and its cash flow.
Definitions of ’accounts receivable factoring’ and meaning of ’accounts receivable factoring’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’accounts receivable factoring’ and other financial terms with our online QFINANCE Financial Dictionary.