A company pledges their receivables so they may

A) Collect a pledge fee.
B) Borrow money.
C) Charge a factoring fee.
D) Increase sales.
E) Recognize a sale.

Pledging receivables is a common practice for companies to borrow money from a bank or financial institution. By pledging their receivables as collateral, the company can access funds at a lower interest rate than if they were to borrow using no collateral. The pledged receivables provide security for the lender against default.