Accounts Receivable: An Unlikely Source of Cash  By Thursday
Bram on 2 April 2010 (Updated 25 April 2010) 0 comments Photo:
hillwoman2  Your accounts receivable are obviously worth money:
just as soon as a client or customer gets around to paying his
invoice, you'll have money in your hands. But in the meanwhile,
those invoices are just worth the paper they're printed on. You
can't spend the money that they promise you until you actually
receive payment. That doesn't mean that accounts receivable
can't be a source of cash in the short-term, however.  Using
Accounts Receivable for Cash  Because banks and other lenders
consider your company's accounts receivable to be an asset, you
can use them to take out an asset-based loan with your accounts
receivable as collateral. Alex Kwechansky's background in public
accounting and business reorganizations has put him on both
sides of the table during this sort of loan. He describes a loan
based on accounts receivable:  This loan uses the company's
customers themselves