Secured ﬁnancing on a short-term basis that involves either the assignment or the factoring of
receivables is called accounts receivable ﬁnancing.

Question

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Accounts receivable financing typically involves the use of receivables as collateral for a short-term loan or line of credit, which can be structured as either an assignment or factoring arrangement.

Secured ﬁNancing on a Short-Term Basis That Involves Either the Assignment