What is the difference between pledging accounts receivable and factoring accounts receivable?© BrainMass Inc. brainmass.com December 24, 2021, 4:56 pm ad1c9bdddf
The transfer of a receivable from the previous creditor (assignor) to a new creditor (assignee).
What is factoring? Factoring is the process of purchasing commercial invoices from a business at a discount. Factoring is essentially a credit service designed to improve cash flow - the factor assumes the credit risk of loss ...
This question involves the fundamentals of pledging accounts receivable and factoring accounts receivable.