An organization that engages in accounts-receivable financing by purchasing the accounts outright is referred to as a:

Question

Quizplus · Accepted Answer

A factor specializes in purchasing accounts receivable from businesses and providing them with immediate cash in exchange for the right to collect the payments from the customers. Factors typically charge a discount or fee for their services, which can vary based on the creditworthiness of the customers, the quality of the accounts, and other factors. The other options (A, B, D) are not typically associated with accounts-receivable financing.

An Organization That Engages in Accounts-Receivable Financing by Purchasing the Accounts