assignment of accounts receivable(Assignment of accounts receivable is a lending agreement, often long term, between a borrowing company and a lending institution whereby the borrower assigns specific customer accounts that owe money (accounts receivable) to the lending institution. In exchange for assignment of accounts receivable, the borrower receives a cash advance for a percentage of the accounts receivable. The borrower pays interest and a service charge on the advance. Read more: Assignment Of Accounts Receivable investopedia.comAlexander Demidov)
assignment of receivables(Assigning your accounts receivables means that you use them as collateral for a secured loan. The financial institution, such as a bank or loan company, analyzes the accounts receivable aging report. For each invoice that qualifies, you receive 50 to 85 percent of the outstanding balance in cash. Depending on the lender, you may have to assign all your receivables or specific receivables to secure the loan. Once you have repaid the loan, you can use the accounts as collateral for a new loan. quora.comAlexander Demidov)
