With accounting factoring, the factor assumes all credit risk on accounts receivable.

Name: With accounting factoring, the factor assumes all credit risk on accounts receivable.
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With accounting factoring, the factor purchases accounts receivable at a discount and assumes the credit risk of those receivables. This means that if a debtor fails to pay their invoice, the factor is responsible for collecting payment instead of the business who sold the receivable.

With Accounting Factoring, the Factor Assumes All Credit Risk on Accounts