Rick's Wholesale Office Supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate short-term borrowing. What can Rick's do?

Question

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Rick's Wholesale Office Supplies can pledge their accounts receivable as collateral to secure short-term loans. This will allow them to maintain control over their accounts receivable while also using them to secure necessary financing. Floor planning may not be applicable to their industry, purging receivables may not be feasible, forcing all customers to pay now could have negative effects on their customer relationships, and selling commercial paper may not be a viable option for their size and credit rating.

Rick's Wholesale Office Supplies Prefers to Handle Its Accounts Receivable