What is the name of the process whereby an external organization takes over the responsibility for the prompt collection of receivables?

Question

Quizplus · Accepted Answer

The process described is known as factoring, where an external organization (the factor) purchases the accounts receivable of a company and is responsible for collecting the payments. This allows the company to receive immediate cash flow for their outstanding invoices and reduces the burden of chasing down payments from customers. Outsourcing, pro-rating, capitalizing, and monetizing are not directly related to this process.

What Is the Name of the Process Whereby an External