Pledging means using accounts payable as collateral for a loan from a finance company or bank.

Name: Pledging means using accounts payable as collateral for a loan from a finance company or bank.
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Pledging typically involves using accounts receivable or other assets as collateral for a loan, not accounts payable. Accounts payable are liabilities, representing amounts a company owes to suppliers or creditors, and thus cannot be used as collateral.

Pledging Means Using Accounts Payable as Collateral for a Loan