Factoring accounts receivable is not a form of secured short-term borrowing. It entails the sale of accounts receivable at a discount to obtain needed short-term funds.

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Factoring accounts receivable involves selling accounts receivable at a discount to a third party, known as a factor, in exchange for immediate cash. This transaction is not considered a form of secured borrowing because the accounts receivable serve as collateral for the financing rather than any tangible assets.

Factoring Accounts Receivable Is Not a Form of Secured Short-Term