Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / The most common form of secured credit is: A) accounts receivable financing

The most common form of secured credit is: A) accounts receivable financing

Finance

The most common form of secured credit is:

A) accounts receivable financing.

B) inventory financing.

C) floor planning.

D) discounted installment contracts.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The answer is A) accounts receivable financing

Accounts receivable financing is financing that allows companies to receive financing that is secured by a part of their accounts receivable.

Explanation of Alternate Options

  • Inventory financing is used to purchase inventory that will not be sold right away. The inventory serves as collateral. Inventory financing is a type of secured credit, but it is not the most common due to the risk of losing product.
  • Floor planning is a type of financing, normally used in retail, used to purchase display items.
  • Discounted installment contracts are agreements where the buyer promises to pay in installments.