Firms who wish to obtain short-term secured loans generally have two major current assets available as collateral in the form of:

Question

Quizplus · Accepted Answer

Receivables and inventory are the two major current assets that firms can use as collateral for obtaining short-term secured loans. Cash and marketable securities may also be used, but they are not considered as major current assets. Factoring and floor planning are not assets, but rather financing methods.

Firms Who Wish to Obtain Short-Term Secured Loans Generally Have