The term _____ refers to a situation in which an exporter sells a time draft at a discount to an intermediary (often a bank)that will pay the exporter immediately and then collect the full amount from the importer at the later date.
A)free on board
B)goodwill
C)factoring
D)flight capital
E)cash in advance

Question

Quizplus · Accepted Answer

Factoring refers to the financial transaction where an exporter sells their accounts receivable (in this case, a time draft) to an intermediary (often a bank) at a discount. The intermediary then collects the payment from the importer at maturity, allowing the exporter to receive immediate payment.

The Term _____ Refers to a Situation in Which an Exporter