Pledging accounts receivable has all of the following characteristics except:

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Pledging accounts receivable involves using accounts receivable as collateral for a loan. The borrower receives money as a loan against their accounts receivable, which are still listed on the balance sheet. The customer payment is made directly to the bank, which takes its share of the proceeds before forwarding the remainder to the borrower. The borrower is typically responsible for collecting the receivables.

Pledging Accounts Receivable Has All of the Following Characteristics Except