A type of short-term loan where the borrower sells its accounts receivables to the lender at a discount to face value is called

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Factoring is a financing method where a company sells its accounts receivables to a third-party financial company, called a factor, at a discount to face value. In return, the factor takes over the responsibility of collecting on these accounts from the company's customers. This type of loan is commonly used by small businesses that need to improve their cash flow, as it provides immediate working capital. The other options listed (A, B, C, and E) are unrelated to factoring.

A Type of Short-Term Loan Where the Borrower Sells Its