Receivables lending is the use of receivables as collateral for an equity issue.

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Receivables lending is actually the use of receivables as collateral for a loan. It is a form of asset-based lending where a company borrows money by pledging its accounts receivable as collateral. The lender advances a certain percentage of the accounts receivable amount and charges interest on the loan. Once the accounts receivable are collected, the borrower pays back the loan with interest.

Receivables Lending Is the Use of Receivables as Collateral for an Equity