A factor earns revenue by paying a discounted price for a receivable, and then, it is hoped, collecting the full amount from the customer.

Name: A factor earns revenue by paying a discounted price for a receivable, and then, it is hoped, collecting the full amount from the customer.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A factor purchases receivables at a discount and profits by collecting the full amount from the debtor, thus earning revenue from the difference.

A Factor Earns Revenue by Paying a Discounted Price for a Receivable