The use of receivables as collateral for a loan is known as:
A)capital leasing
B)warehouse financing
C)receivables lending
D)venture leasing

Question

Quizplus · Accepted Answer

Receivables lending, also known as accounts receivable financing, involves a company using its outstanding invoices or receivables as collateral for a loan. This type of financing is often used by small businesses or those with seasonal revenue streams to improve cash flow and access immediate funding. Capital leasing involves leasing assets, warehouse financing involves using inventory as collateral for a loan, and venture leasing involves leasing equipment specifically for startup companies.

The Use of Receivables as Collateral for a Loan Is