What does "credit card receivables" mean in the following context?

Question

The company said in March that it's in talks with an unnamed investment partner to sell half its credit card receivables for about $4 billion.

Answer 1

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Answer 2

The amount of money that they could potentially collect from credit card sales...  Not all credit charges are necessarily paid i guess, so the potential of failure is a certain percentage.  This percentage was taken out of the total CCR's, which was obviously more than 4 billion, and an investment was made based on the calculation that more than 4 billion would still be paid.

In basic, 100-level finance and accounting, they just use the broad term "Accounts Recievable"

Answer 3

It means that the company will be selling the money that they expect to receive from future credit card sales.  They will be selling them at a reduced rate, e.g.  the company has 6 billion owed to them (or expects that much in the future), but to get some money now they will "sell" whats owed (or will be owed) for much less.  Another example would be say you own a flower shop and you regularly sell $1000 of flowers/month and the buyers put them on credit cards.  A company would buy those $1000. worth of credit card sales for $500 because you need that $500 right now.  Does that make sense?  Hope this clears it up for you.  Just FYI, this is a very common loan for retailers.  Good luck : )

Answer 4

its just all the interest payments they will receive on credit cards. so the company sells credit cards, and keeps getting interest from the cardholders. they pool these cards into a security and sell them off to investors