A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount.This sale is called:

Name: A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount.This sale is called:
Brand: Quizplus
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Question

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This sale is called factoring, where a company sells its accounts receivable to a third party (the factor) at a discount in order to obtain immediate cash.

A Company Sells Its Accounts Receivable to a Financial Institution