A form of asset-based lending that advances cash to a business in exchange for its receivables is called

Question

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Factoring is a form of asset-based lending where a business sells its receivables to a third-party factor in exchange for immediate cash. This allows the business to access cash that is tied up in outstanding invoices and can improve their cash flow. The factor assumes responsibility for collecting on the receivables and takes a fee for their services.

A Form of Asset-Based Lending That Advances Cash to a Business