Typically, a company can borrow what percent of its accounts receivable's face value if it has a good credit rating and its customers have excellent credit ratings.
A) 15% to 25%
B) 25% to 50%
C) 50% to 75%
D) 75% to 90%
E) 90%to 100%

Question

Quizplus · Accepted Answer

Typically, a company with a good credit rating and customers with excellent credit ratings can borrow between 75% to 90% of its accounts receivable's face value. This is because the risk of default is considered low, allowing lenders to offer a higher percentage of the receivables as a loan.

Typically, a Company Can Borrow What Percent of Its Accounts