Pledge of Receivables

A pledge of receivables is a financing arrangement where a business pledges its receivables as collateral for a loan. This allows businesses to access funds quickly by using outstanding invoices as security. Pledging receivables is commonly used to improve liquidity without waiting for customer payments.

Automating the management of pledged receivables ensures that businesses have accurate records of their collateral, reducing manual effort. AI-powered AR systems help businesses track which receivables are pledged and ensure that they are updated in real-time.

This automation ensures efficient cash flow management and enhances financial decision-making. Pledging receivables is a powerful tool for businesses looking to access capital without disrupting their customer relationships.