UNDERWRITING GLOSSARY
A/R Aging
Accounts Receivable Aging
A report grouping receivables by how long they have been outstanding.
What does A/R Aging mean?
A report grouping receivables by how long they have been outstanding. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
A/R Aging in context
A lender may compare receivables under 30 days with balances over 90 days.
Why it matters in financing
A/R Aging can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related underwriting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.