A finance company or bank that purchases and takes ownership of another company's accounts receivable is called a:
A)Payer.
B)Pledger.
C)Factor.
D)Payee.
E)Pledgee.

Question

Quizplus · Accepted Answer

A company that purchases and takes ownership of another company's accounts receivable is called a factor. Factors provide this service so that the selling company can receive immediate cash for their accounts receivable instead of waiting for customers to pay. This arrangement is called factoring.

A Finance Company or Bank That Purchases and Takes Ownership