G
Geoffrey09
Guest
So for some this is a new topic but for accountants its a common term that they encounter everyday in their works.
What is receivable financing? In simple term it is the selling ar assigning of your earning thru account in a lower price. Why does people sell their receivables in lower price if they can earn it in a full amount? Because they want to advance the cash flow from those receivables, some circumstances force enterprises to sell their receivables at lower price because they need to pay something immediately or they need to loan something and they need to use those receivables as a collateral for the loan. There are many ways used in receivable financing that helps entrepreneurs cope up with the heated competition in the world.
What is receivable financing? In simple term it is the selling ar assigning of your earning thru account in a lower price. Why does people sell their receivables in lower price if they can earn it in a full amount? Because they want to advance the cash flow from those receivables, some circumstances force enterprises to sell their receivables at lower price because they need to pay something immediately or they need to loan something and they need to use those receivables as a collateral for the loan. There are many ways used in receivable financing that helps entrepreneurs cope up with the heated competition in the world.