A factor buys the firm's receivables, and the customer then makes payments directly to the factor.

Name: A factor buys the firm's receivables, and the customer then makes payments directly to the factor.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This describes the process of factoring, where a company sells its accounts receivable to a third-party financial company (the factor) at a discount in exchange for immediate cash. The customer then sends payments directly to the factor.

A Factor Buys the Firm's Receivables, and the Customer Then