The process of using accounts receivable as security for a loan is known as pledging accounts receivable.

Name: The process of using accounts receivable as security for a loan is known as pledging accounts receivable.
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Pledging accounts receivable is a common practice in which a company uses its outstanding receivables as collateral for a loan. This allows the company to free up cash flow and obtain financing based on the creditworthiness of its customers.

The Process of Using Accounts Receivable as Security for a Loan