Harlan's customers have been a little slow in paying their invoices, and he is short on cash to pay his quarterly taxes. Harlan should consider
A) sending the late payers to a collection agency.
B) factoring.
C) putting his late payers on credit hold until they pay up.
D) taking out a personal loan to pay the taxes.

Question

Quizplus · Accepted Answer

Factoring is a way for a business to get immediate cash by selling its invoices to a third-party at a discount. This could be a good option for Harlan because it would provide him with the cash he needs to pay his taxes, while also allowing him to potentially collect on the late payments at a later time. Sending late payers to a collection agency or putting them on credit hold could damage his relationship with them and potentially harm his future business with them. Taking out a personal loan would also put him in debt and potentially cause financial strain in the future.

Harlan's Customers Have Been a Little Slow in Paying Their