A type of short-term loan where the borrower sells its receivables to the lender up-front, but at a discount to face value, is called:

Question

Quizplus · Accepted Answer

Factored receivables financing involves a borrower selling its receivables to the lender at a discounted rate. The lender then collects the full amount from the borrower's customers, keeping the difference as profit. Choices A, B, C, and E are all incorrect as they do not accurately describe this type of loan.

A Type of Short-Term Loan Where the Borrower Sells Its