In discounted accounts receivable financing, a small business can typically borrow an amount equal to ________ percent of its receivables it pledges as collateral.
A) 10 - 25
B) 35 - 55
C) 55 - 85
D) 80 - 95

Question

Quizplus · Accepted Answer

In discounted accounts receivable financing, a small business can typically borrow an amount equal to 55-85 percent of its receivables it pledges as collateral. This is because the lender takes into account the creditworthiness of the business's customers and the age of the receivables before deciding on the amount to lend.

In Discounted Accounts Receivable Financing, a Small Business Can Typically