The FeelsoGood Furniture Stores often rely on factoring to meet their short-term financing needs.This means that FeelsoGood borrows money from a finance company and pledges its accounts receivables as collateral.

Question

Quizplus · Accepted Answer

Factoring involves selling accounts receivables to a finance company at a discount, not borrowing money and using them as collateral.

The FeelsoGood Furniture Stores Often Rely on Factoring to Meet