An accounting term for a company’s customer purchases where payment is not made at the time of the related sales but is due within one year. Accounts receivable are often referred to as “receivables” or “AR.” Short-term debt (referred to as working capital financing) is often used to fund the timing difference between the expected collection of AR payments and the Issuer’s immediate need for cash to sustain its operations. An Issuer’s short-term indebtedness often is collateralized by its accounts receivable. Relates to issuers.
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by [email protected] | Feb 22, 2019
