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trade receivables are accounts receivables that arise from commercial transactions a distinction needs to be made between trade and non-trade receivables whereas trade receivables are Promises of payment for goods and services delivered non-trade receivables are Promises of money that arise from things other than trade these could include tax refunds or Insurance claim payouts trade receivables are put in the current assets section of a balance sheet if the money is expected to be paid within a year they represent the accounts receivable for goods and services that have been sold but not paid for trade receivables financing trade receivables financing also known as invoice Finance is when a company uses trade receivables to raise money essentially a company has unpaid invoices that they can use to raise cash one common way to do this is to approach a factoring firm that will buy the outstanding invoices for a discount in return for an instant cash payment morally between 75 percent and