South Carolina Accounts Receivable — Assignment refers to the process of transferring or selling a company's unpaid invoices or outstanding receivables to a third-party entity, known as an assignee, in exchange for immediate cash. This financial transaction helps the company to expedite the collection of funds that may otherwise be tied up in accounts receivable. Keywords: South Carolina, accounts receivable, assignment, unpaid invoices, outstanding receivables, third-party entity, assignee, immediate cash, financial transaction, collection of funds. Types of South Carolina Accounts Receivable — Assignment: 1. Recourse Assignment: In this type of assignment, the company retains the responsibility for repurchasing the receivables if the assignee is unable to collect from the debtors. The company assumes the credit risk associated with the assigned receivables. 2. Non-Recourse Assignment: Under this arrangement, the assignee assumes the credit risk for collecting the receivables. If the debtors fail to pay, the company is not obligated to repurchase the receivables or compensate the assignee. 3. Traditional Assignment: This type of assignment involves the transfer of ownership of the accounts receivable to the assignee. The assignee operates independently to collect the debt owed by the debtor. 4. Confidential (Notification) Assignment: In this assignment type, the debtor is notified of the assignment, and payments are directed to a designated bank account controlled by the assignee. However, the company remains responsible for collecting the assigned receivables and managing customer relationships. 5. Factoring: Factoring is a common form of accounts receivable assignment where a factor purchases the company's receivables at a discounted rate. The factor assumes the responsibility for collection and bears the credit risk associated with the assigned receivables. These different types of Accounts Receivable — Assignment in South Carolina offer companies flexibility in managing their cash flow, reducing credit risk, and accelerating their access to capital. It is crucial for businesses to assess their financial needs and the risks involved before choosing the appropriate assignment option for their accounts receivable in South Carolina.