RS Bank provides short-term loans to small businesses.Many of the bank's customers take months to pay their bills.The bank often buys the companies' accounts receivable and pays them in return.This is an example of ________.

Question

Quizplus · Accepted Answer

A)Factoring refers to obtaining funding by selling accounts receivable. Factoring is an alternative to short-term debt financing. The given situation is an example of factoring.
B)Factoring refers to obtaining funding by selling accounts receivable. Factoring is an alternative to short-term debt financing. The given situation is an example of factoring.
C)Factoring refers to obtaining funding by selling accounts receivable. Factoring is an alternative to short-term debt financing. The given situation is an example of factoring.
D)Factoring refers to obtaining funding by selling accounts receivable. Factoring is an alternative to short-term debt financing. The given situation is an example of factoring.
E)Factoring refers to obtaining funding by selling accounts receivable. Factoring is an alternative to short-term debt financing. The given situation is an example of factoring.

RS Bank Provides Short-Term Loans to Small Businesses