BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Accounts receivable pledging occurs when a business uses its accounts receivable asset as collateral on a loan, usually a line of credit. When accounts receivable are used in this manner, the lender typically limits the amount of the loan to either: 70% to 80% of the total amount of accounts receivable outstanding; or.

Detailed explanation-2: -Accounts receivable is any amount of money your customers owe you for goods or services they purchased from you in the past. This money is typically collected after a few weeks and is recorded as an asset on your company’s balance sheet. You use accounts receivable as part of accrual basis accounting.

Detailed explanation-3: -Accounts receivable financing allows companies to receive early payment on their outstanding invoices. A company using accounts receivable financing commits some, or all, of its outstanding invoices to a funder for early payment, in return for a fee.

Detailed explanation-4: -Loans receivable is an account in the general ledger of a lender, containing the current balance of all loans owed to it by borrowers. This is the primary asset account of a lender.