Glossary
What is Accounts Receivable?
Accounts receivable is the money customers owe your business for goods or services you have already delivered and invoiced. It is recorded as an asset on your balance sheet. Receivables are central to several financing products: lenders may use them as collateral for a line of credit, and factoring companies purchase them outright. An accounts receivable aging report, which groups invoices by how long they have been outstanding, is a common document request.
Example
A staffing firm has $80,000 in invoices outstanding to client companies, payable within 45 days.
Related funding
Invoice Factoring: Turn slow-paying invoices into cash now.
Related terms
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