The terms "pledging accounts receivable" and "factoring accounts receivable" are essentially synonymous.

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Pledging accounts receivable involves using accounts receivable as collateral for a loan, while factoring accounts receivable involves selling the accounts receivable to a third-party factoring company at a discount. While similar in that they both involve using accounts receivable to generate financing, they are not exactly the same.

The Terms "Pledging Accounts Receivable" and "Factoring Accounts Receivable" Are