Accounts Receivable

Accounts Receivable (Issuer related) – An accounting term for short term (less than one year) customer payment obligations, which are short term assets of the Issuer recorded at a point in time.  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 receivables and the Issuer’s immediate need for cash to sustain operations.   Short term indebtedness is often collateralized by accounts receivable.

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