Define assignment of Accounts Receivable

Define assignment of Accounts Receivable?

E

Expert

Verified

If accounts receivable are used as security for a loan, the bank can collect the assigned receivables owing to the business if the loan is not repaid. As long as the loan remains in good standing, the debtor is usually free to collect its own receivables and carry on business as usual.

   Related Questions in Business Law and Ethics

©TutorsGlobe All rights reserved 2022-2023.