A finance company or bank that purchases and takes ownership of another company's accounts receivable is called a:

Question

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The finance company or bank that purchases and takes ownership of another company's accounts receivable is called a factoring company or a factor. They advance funds to the company against the accounts receivables, allowing the company to receive immediate payment instead of waiting for payment from their customers. The other options listed are not applicable to this scenario.

A Finance Company or Bank That Purchases and Takes Ownership