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Assigned Account

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A type of secured transaction whereby an account receivable is pledged to a bank, factor, or other lender to secure the repayment of a loan.

It is common commercial practice for a manufacturer or wholesaler to sell inventory on open account, a debt owed to the seller of inventory that is to be repaid by its buyer as the merchandise is sold. This arrangement creates an account receivable that the seller uses as collateral for a loan.



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Thirty-four percent of customers who have an assigned account manager report having had a problem with fees and service charges, compared with 39% of customers without an assigned account manager.
Upon installation, the assigned account specialist institutes a set of customized climate-related best practices encompassing everything from set points to schedules to heating and cooling limits.
At the time of sale, the factor will pay you 70 to 90 percent of the assigned accounts receivable.
 
 
 
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