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Accounts receivables represent the money due from customers for products or services delivered that have been invoiced but where payment has not yet been received. The composition of accounts receivables is the key factor in terms of its value as collateral. Accounts receivables at a utility company with hundreds of thousands of customers would be regarded as high quality. Historic default rates can be used to establish the likely level of future losses to a high level of confidence. Banks would also probably accept accounts receivables at companies that had only a handful of investment grade customers.
Banks are generally reluctant to accept accounts receivables as collateral from many companies, however.