_____ is a method of borrowing against receivables.

Question

Quizplus · Accepted Answer

Factoring is a method of borrowing against receivables where a business sells its accounts receivables to another company, known as a factor, at a discount in exchange for immediate cash. The factor then takes over the responsibility of collecting on the accounts receivable. This can be a useful way for businesses to improve their cash flow and access capital quickly. Discounting is also a method of borrowing against receivables, but it involves using the receivables as collateral for a loan rather than selling them outright. Trading and reconciling are not methods of borrowing against receivables.

_____ Is a Method of Borrowing Against Receivables