Definition ∞ Trade Receivables represent the amounts of money owed to a business by its customers for goods or services delivered on credit. These are short-term assets that arise from sales transactions where payment has not yet been received. They are a critical component of a company’s working capital and reflect its sales activity. Businesses manage trade receivables to ensure timely cash flow.
Context ∞ Trade Receivables are regularly discussed in financial news, particularly in reports on corporate liquidity, balance sheet health, and economic activity. In the context of digital finance, discussions sometimes involve the tokenization of these receivables to facilitate faster financing or improved supply chain payments. Their efficient management is crucial for business operations and financial stability.
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