Account Receivable Loans and often referred to as invoice financing, is a financial arrangement where a business uses its outstanding invoices as collateral to secure a loan or line of credit. 

In this method, the lender provides the business with a percentage of the invoice amount upfront, allowing the business to access cash quickly rather than waiting for customers to pay their invoices. Once the customer pays the invoice, the lender receives the repayment, and the business may receive the remaining portion of the invoice amount, minus fees and interest. 

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