When a finance company provides a loan to a business against the security of the business's accounts receivable this is called:

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Accounts receivable financing, also known as invoice financing or receivable factoring, is the process of borrowing against outstanding customer invoices. It allows businesses to access the capital they need quickly, without waiting for customers to pay their outstanding invoices. Floor plan finance is generally used in the automotive industry to finance inventory, trade credit refers to a supplier providing a customer with goods or services with payment due at a later date, and factoring is a broader term that encompasses the sale of all types of accounts receivables, whereas accounts receivable financing only involves borrowing against outstanding customer invoices.

When a Finance Company Provides a Loan to a Business