An advantage of factoring is that:
A) factors help firms sell newly issued stock.
B) factors deal with asset-backed commercial paper.
C) firms using factors always receive the full amount their customers owe.
D) firms using factors get their money almost immediately.

Question

Quizplus · Accepted Answer

Factoring allows firms to receive immediate cash by selling their accounts receivable to a factor, which provides quick access to funds.

An Advantage of Factoring Is That