Which type of loan can be made against a firm's outstanding receivables; allowing the bank to be repaid as they are collected.

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An accounts-receivable loan is a type of loan made against a firm's outstanding receivables that allows the bank to be repaid as they are collected. The borrower pledges their accounts receivable as collateral for the loan, and the bank advances funds based on a percentage of the value of the receivables. As invoices are paid, the bank is repaid until the loan is fully satisfied. Warehouse-receipt loans are made against inventory, commercial loans are general-purpose loans, and trade loans are used for specific trade transactions.

Which Type of Loan Can Be Made Against a Firm's