Consignment is the type of financing used by businesses to finance trade receivables when conventional financing (e.g., banks) is NOT available.

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Consignment is a business arrangement in which goods are left in the possession of another party to sell, typically the consignee, who pays the consignor, the owner of the goods, only after the items are sold. It is not a financing method for trade receivables but rather a sales strategy.

Consignment Is the Type of Financing Used by Businesses to Finance