Eligible accounts
Eligible accounts
Eligible accounts, in lending, are accounts receivable that can be included in a corporate borrower's collateral base. Financial institutions will often take a company's accounts receivable as security in a debt facility. Since some accounts receivable have a higher chance of becoming uncollectible than others, the loan agreement will define eligible accounts and ineligible accounts. Eligible accounts are included in the collateral base, and ineligible accounts are not.
6.05
