The pledging cost of accounts receivable is normally 2 to 5 percent above the prime rate.

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This statement is true. The cost of accounts receivable pledging is typically expressed as a percentage above the prime rate, which is the interest rate that commercial banks charge their most creditworthy customers for short-term loans. The exact percentage that a company will pay for pledging accounts receivable can depend on a variety of factors, but generally falls between 2% and 5% above the prime rate.

The Pledging Cost of Accounts Receivable Is Normally 2 to 5