The selling of accounts receivables to a third party, generally at a discount, where the third party specializes in collections, is best described as:

Question

Quizplus · Accepted Answer

Factoring involves the selling of accounts receivables to a third party, often at a discount, where this third party specializes in the collection of those receivables. This is a financial transaction and a type of debtor finance.

The Selling of Accounts Receivables to a Third Party, Generally