Finance companies commonly act as ____ for accounts receivable; that is, they purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of theseaccounts.

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Finance companies that purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of these accounts are known as factors. Factors offer an attractive financing option for businesses as they provide immediate cash flow without the need for collateral or additional debt.

Finance Companies Commonly Act as ____ for Accounts Receivable; That