If a company is looking to shorten their cash-to-cash cycle, they can sell their accounts receivable and this is called
A) recourse.
B) factoring.
C) writeoff. d recovery.

Question

Quizplus · Accepted Answer

Factoring is a financial transaction in which a business sells its accounts receivable to a third party at a discount. This allows the business to shorten its cash-to-cash cycle and improve its cash flow.

If a Company Is Looking to Shorten Their Cash-To-Cash Cycle