Question: Is purchasing “receivables” an issue of ribbis?
[Receivables, also referred to as “accounts receivable”, are debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.]
Answer:
There is no issue of ribbis in this situation. This is because purchasing receivables is akin to purchasing a debt, for less than the amount of the debt, which is not forbidden because of ribbis. The precedent for this is found in Shulchan Aruch Yoreh De’ah Siman 173 Se’if 4 that writes that one who is owed money may sell the loan to another. This is allowed irrespective of whether the loan has been recorded in a document or not. However, it must be stipulated that the seller is not liable to the purchaser (ibid). Therefore one can purchase receivables, even if the purchase price is less than the value of the receivables, provided that the seller is not liable to the purchaser.