Accounts Receivable Financing

Business, Legal & Accounting Glossary

Definition: Accounts Receivable Financing


Accounts Receivable Financing


Full Definition of Accounts Receivable Financing


The selling of a company’s accounts receivable, at a discount, to a factor, who then assumes the risk of the account debtors and receives cash as the debtors settle their accounts. A firm that sells its accounts receivable may not be confident of its ability to collect those debts, or might think that the cost of collecting that debt is more than the discount which must be provided to the factor when of selling their receivables. also called accounts receivable financing.


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Accounts Receivable Financing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 04, 2021 https://payrollheaven.com/define/accounts-receivable-financing/.
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Accounts Receivable Financing. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/accounts-receivable-financing/ (accessed: December 04, 2021).
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Accounts Receivable Financing. PayrollHeaven.com. Retrieved December 04, 2021
, from PayrollHeaven.com website: https://payrollheaven.com/define/accounts-receivable-financing/

Definition Sources


Definitions for Accounts Receivable Financing are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.