What are consumer receivables?
Consumer receivables are contracts created between a business and a consumer. If the contracts pertain to a service then the consumer receivable may be referred to as an unsecured consumer contract. It the contracts pertain to a “widget” the consumer receivable may be referred to as a retail installment contract. In either instance the consumer receivable will exist in contractual form and as such will specify terms (usually three months to five years) and an interest rate. Consumer receivables may be sold by the business that owns them in order to enhance the cash flow status of that business.
