At Lou's Landscaping Services,a number of customers were not paying up on time,and Lou needed cash for a large purchase.As a result,Lou sold the company's accounts receivable to a finance company for 70 percent of the total collection amount.This method of raising funds is referred to as

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Factoring is the process of selling accounts receivable to a third party at a discount to raise immediate cash.

At Lou's Landscaping Services,a Number of Customers Were Not Paying