Concerning factoring, all of the following are true except:
A) factors prefer business over consumer accounts
B) factoring is done at a discount to the third party purchaser
C) factoring discounts are often a function of the riskiness of the receivables
D) factoring speeds the inflow of cash to the seller of the receivables
E) receivable lending is the process of factoring

Question

Quizplus · Accepted Answer

Receivable lending is not the same as factoring; factoring involves selling receivables, while receivable lending involves using receivables as collateral for a loan.

Concerning Factoring, All of the Following Are True Except