Factoring accounts receivable is the sale of a firm's receivables while pledging accounts receivable is the use of accounts receivable as collateral for a loan.

Name: Factoring accounts receivable is the sale of a firm's receivables while pledging accounts receivable is the use of accounts receivable as collateral for a loan.
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Factoring accounts receivable means selling them to a third-party while pledging accounts receivable means using them as collateral for a loan.

Factoring Accounts Receivable Is the Sale of a Firm's Receivables