Surf 'N' Sun Shop Sells Ski Boats and Other Boating

Surf 'N' Sun Shop sells ski boats and other boating accessories. It receives most of its inventory about three months in advance of the summer season, but it is not able to pay for the inventory up front. Instead, its suppliers allow Surf 'N' Sun to use its inventory as collateral. This type of agreement is called

A) unsecured short-term financing.
B) long-term lending.
C) factoring.
D) secured short-term financing
E) a promissory note.