The two forms of secured borrowing that companies use to obtain cash from accounts receivables are pledging and assigning.

Question

Quizplus · Accepted Answer

Pledging and assigning are indeed two forms of secured borrowing that companies use to obtain cash from accounts receivable. In pledging, accounts receivable are used as collateral for a loan, while in assigning, accounts receivable are transferred to a lender in exchange for a loan, with the company collecting the receivables on behalf of the lender.

The Two Forms of Secured Borrowing That Companies Use to Obtain