LawnTrim Inc.is in need of working capital.It sold at a discount its account receivables to a factor-without recourse.LawnTrim is using a form of

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By selling its accounts receivable to a factor, LawnTrim Inc. is obtaining immediate cash for the discounted value of those receivables. This is a form of credit insurance, as it helps to ensure that the company has the necessary working capital to continue operating and meeting its obligations. The factoring company assumes the risk of the accounts receivable being paid, so LawnTrim is not liable if any of the customers fail to pay their bills.