Answer: Receivable backed loan
Explanation:
The liquidity of a firm can be met from various means however receivable backed loan is the best of the above option. The the firm may lose some values of the receivable as a compensation for the creditors, it does not have any other assets to lose in case of loan defaults, he can estimate it's total loss from the contract and the fund is guaranteed.
In an inventory backed loan apart from paying interest, he may lose it's inventory on defaults, customer disappointment, though the fund is guarantee.
Credit card also involved Interest payment, property may also be lost on defaults, though fund availability is guaranteed.
Home equity line of credit also involves Interest payment and property may also be lost to loan defaults but fund it's guarantee.
Selling receivables does not involve Interest payment or loss of assets but it may not sell which means the fund is not guarantee which may lead to insolvency and other related issues .
