Accounts Receivable and Inventory Financing
Accounts receivable and inventory financing (ARIF) is the most fundamental form of collateral-based commercial lending. It combines elements of secured lending and short-term business loans. Commercial borrowers use the value of their receivables and inventory, or working assets, as collateral to secure financing to produce and market their products and services.
Accounts Receivable and Inventory Financing (Comptroller’s Handbook, March 2000)
Summarizes accounts receivable and inventory financing risks, and outlines how banks can manage them